A new wind is blowing in the nation's housing market. And if one of the industry's top economists is prescient, it's a wind that could begin to cool the red-hot real estate market in Dallas-Fort Worth and other high-growth cities around the country. Declines in home buyer traffic and changes in consumer attitudes about housing purchases are showing up after several years of positive growth, says Lawrence Yun, chief economist for the National Association of Realtors.
"One thing that is clear is there is much weaker momentum now compared to six months ago, one year ago or even 18 months ago," Yun told thousands of real estate agents meeting this week in Florida. "We have had five years of a decent run. Is it due for a correction?" So far, the association isn't backing away from its forecast of modest gains in U.S. home sales this year and in 2017. But Yun sees indications of a moderation in housing demand and in consumer interest. "The number of people saying it's a good time to buy a home is steadily declining," Yun said. "The number of people who say it is not a good time is beginning to rise, to a little over 30 percent. There is a slight turn in consumer sentiment about buying, to less enthusiasm. Everything is now trending neutral." Realtors around the country report that buyer traffic has leveled off in many markets after several years of steady gains.
- Dallas Morning News, November 2, 2016
Source: National Association of Realtors