The Real Deal New York

National housing shortage may be the first sign of a downturn

For the first time since July 2016, annual home re-sales are declining
October 22, 2017 03:44PM

Did someone say downturn? (Pixabay)

With annual existing home sales declining for the first time since July 2016, the numbers indicate a chronic shortage of for-sale homes, according to the Wall Street Journal.

Last month, median home prices rose 4.2 percent to $245,100, while September’s home sales for pre-existing homes declined by 1.5 percent. While the burgeoning shortage is undeniable, experts have different views of the bigger story behind it.

Some say it’s an indication of slow home construction, which was only exacerbated further by the damage caused by hurricanes as workers now have to spend additional time on rebuilding efforts as opposed to new construction projects.

Others, like Fannie Mae chief economist Doug Duncan, say the shortage is a telltale sign that happens “before there’s a downturn.”

[WSJ] — E.K. Hudson