The latest July-August issue of REALTOR Magazine features an interesting article by Lawrence Yun, the Chief Economist for the National Association of REALTORS. The main headline touts that a shortfall in housing is creating record prices across the United States, but a crash like the one in the Great Recession of 2008 – 2010 is not forecasted to happen, again.
To begin with, the average home sold in seventeen days in April of 2021. Is this too short of a time for buyers to feel happy about their purchase? Do the majority of homebuyers have remorse? No. Yun states that buyers “come to see they made the right decision [to buy]” in these times.
A crash will not likely happen because there are fewer subprime mortgages with institutional checks and balances to make sure that the right loans are approved for the right applicants. There are also not enough houses to purchase in 2021, so “home prices are in no danger of falling sharply.”
Most importantly, Lawrence Yun states that “the national median home price is to rise 9% this year and another 3% in 2022. Hyperspeed homebuying should taper off by year’s end as supply improves and affordability challenges persist.”