Lawrence Yun, chief economist for the National Association of Realtors®, today told the U.S. Senate Committee on Banking, Housing, and Urban Affairs that he does not foresee a nationwide decline in home prices despite indications that price growth is set to slow. Yun testified that the potential for weaker sales should increase available inventory in some markets, but not enough to diminish persistent affordability constraints which, for many Americans, have kept home ownership out of reach over recent years.
“In the near term, I do not expect the situation to change appreciably,” Yun said Thursday. “Historic under supply in the market, combined with continued demand, will likely drive ongoing issues with affordability for many Americans.
“Any short-term price adjustments, if they occur, will be less consequential compared to the immense longer-term housing affordability challenges we face as a country.”