Hope for Housing (Despite Dismal Headlines)

Recent headlines have highlighted August’s decline in home sales, describing the dip as a “significant set back” for the housing market – or even worse.  According to today’s report by Dan Green, these headings are too narrowly focused and unnecessarily alarming. While Green acknowledges the drop, he offers a wider (and more positive) perspective, encouraging Americans to “rest easy.”

The media have stressed home sale statistics, but many economists see a bigger picture and take into account other factors. Green writes about the importance of volume, price and supply, reminding readers that “housing supply is paramount to the long-term strength of the market.” Though last month’s drop in home sales is indeed negative news, Green believes the continuing decline of overall supply indicates that equilibrium is ahead and “a full housing recovery is just around the bend.”

To read the full Existing Home Sales report, click here.