Stagnant U.S. housing prices may be the new normal

TRD MIAMI /
Aug.August 23, 2012 02:15 PM

A U.S. housing market with rising demand but stagnant prices may be the new normal, according to the New York Times. The numbers bore that out yesterday when the National Association of Realtors reported prices decreased between June and July even as sales of existing homes rose 2.3 percent over that same period.

Even though concerns that a backlog of distressed properties would hit the market have mostly subsided, sales of new homes have trended higher and there is generally percieved to be a shortage of residential inventory, the Times suggested that prices would barely increase over the next decade.

Real estate agents told the paper that a weak job market, stagnant wages and tight lending standards are keeping prices glued to the floor. Furthermore, even though people want new homes, many are reluctant to overpay as memories of the crash remain fresh. And with the global and national economies still hanging in the balance, the best that can be expected are short periods of price spikes amid a largely flat trend. [NYT]Adam Fusfeld


Related Articles

arrow_forward_ios
A house with a real estate agent (Credit: iStock)

New lawsuits raise question of who should pay homebuyer’s agent

The United States housing market is up in April (Credit: iStock)

US housing starts jump in April amid lower mortgage rates

NAR CEO Bob Goldberg (left) and Crexi CEO Michael DeGiorgio

NAR inks partnership with Crexi

Is the tax overhaul law impacting real estate?

Is the tax overhaul law impacting real estate?

Class action suit could change real estate commissions

Class action suit could change real estate commissions

(Credit: iStock)

NAR survey shows Realtors make above-average donations of time, money to charity

NAR’s new top lobbyist is a former Trump administration official

NAR’s new top lobbyist is a former Trump administration official

Weston real estate agent sues NAR, Move Inc. over unsolicited texts from Realtor.com

Weston real estate agent sues NAR, Move Inc. over unsolicited texts from Realtor.com

arrow_forward_ios
Loading...