What do experts say is causing the lack of inventory in the housing market?
In a recent interview with Yahoo! Finance, chief economist for Realtor.com, Danielle Hale, explained the reasons for the current housing supply crunch the market is dealing with.
Hale stated that while prices are high and mortgage rates continue to tick upwards, there is another reason for the current lack of inventory. The U.S. housing market needs anywhere from 2 million to 6 million homes depending on which metrics you look at.
When asked about the gap in construction, Hale said, “Even if all we did was build to fill the gap that exists, we’re looking at a 2 to 5-year problem. And that’s not considering all those new households that are formed. So there is a lot of opportunity for construction, and I think that’s going to continue over the next several years. Fortunately, if you look at multifamily construction in particular, the number of multifamily units under construction right now is at a record high.”
What’s the current real estate market outlook?
Lawrence Yun, the chief economist for the National Association of Realtors, recently issued an updated outlook on the U.S. housing market.
Yun’s presentation offered the following predictions. First, he’s expecting mortgage rates to be near 6% by the end of the year. While there may be some pain in the short term, he sees rates cooling off as we get closer to 2024.
Second, rental prices will also come down. His charts are already showing that rental prices seem to be off peak, and they should continue to cool.
Third, Yun’s charts show that home prices have started to cool off. The last time home prices started to tick down was from September 2006 to September 2011. If history is any indication, we may see a period of cooling over the next few quarters.
How much does one of the coolest houses in L.A. cost?
An early work by famed Southern California architect Richard Dorman has hit the market for only the second time ever. Considered cutting edge when it was built in the 1950s, the home in View Park, CA has an undeniable retro look that some would consider timeless.
The current owners have held the property since 1967, and the third owner may need to plan for a few updates. The home measures 3,375 sq. ft. and still has several original touches including birch kitchen tables, two wood-burning fireplaces, and a few unique touches like and entertainment system that folds into the wall, a dumbwaiter system, and brickette flooring at the entrance.
The price tag on this unique home? The current asking price for this retro cool is only $1.85 million.
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