1. Economic and Housing Market
Trends and Outlook
Lawrence Yun, Ph.D., Chief Economist, NATIONAL ASSOCIATION OF
REALTORS®
Mike McGrew, 2014 NATIONAL ASSOCIATION OF REALTORS®
Treasurer
Presentation at NAR Leadership Summit
Chicago, IL
August 27, 2013
3. Existing Home Inventory
(Bouncing at 13-year lows)
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
2000
- Jan
2001
- Jan
2002
- Jan
2003
- Jan
2004
- Jan
2005
- Jan
2006
- Jan
2007
- Jan
2008
- Jan
2009
- Jan
2010
- Jan
2011
- Jan
2012
- Jan
2013
- Jan
5. New Home Inventory
(Newly Constructed Homes Inventory at 50-year low)
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2000
- Jan
2001
- Jan
2002
- Jan
2003
- Jan
2004
- Jan
2005
- Jan
2006
- Jan
2007
- Jan
2008
- Jan
2009
- Jan
2010
- Jan
2011
- Jan
2012
- Jan
2013
- Jan
6. Shadow Inventory
(% of Loans in foreclosure process or more than 90 days late)
0
2
4
6
8
10
12
U.S.
8. Housing Starts … Need to Reach 1.5 million
soon or persistent housing shortage
0
500
1000
1500
2000
2500
2000
- Jan
2001
- Jan
2002
- Jan
2003
- Jan
2004
- Jan
2005
- Jan
2006
- Jan
2007
- Jan
2008
- Jan
2009
- Jan
2010
- Jan
2011
- Jan
2012
- Jan
2013
- Jan
multifamily single-family
Thousand units (annualized)
Long-term Average
9. Existing vs. New Home Price … Big Gap
(single-family homes)
0
50000
100000
150000
200000
250000
300000
2000-Jan
2000-Jul
2001-Jan
2001-Jul
2002-Jan
2002-Jul
2003-Jan
2003-Jul
2004-Jan
2004-Jul
2005-Jan
2005-Jul
2006-Jan
2006-Jul
2007-Jan
2007-Jul
2008-Jan
2008-Jul
2009-Jan
2009-Jul
2010-Jan
2010-Jul
2011-Jan
2011-Jul
2012-Jan
2012-Jul
2013-Jan
2013-Jul
New
Existing
10. Home Price Forecast
by Wall Street Journal Economists Panel
Year WSJ Home Price Forecast
2013 7%
2014 5%
22. Forecast
2011 2012 2013
Forecast
2014
Forecast
GDP Growth +1.8% +2.1% +1.6% +2.6%
Existing Home Sales 4.3 million 4.7 million 5.1 million 5.2 million
Housing Starts 610 K 780 K 1.0 million
(not enough)
1.2 million
(not enough)
Existing Home Price
Growth
- 4% + 6% + 11% + 6%
30-yr Mortgage Rate
(year-end)
4.7% 3.5% 4.6% 5.2%
23. Summary on What to Expect
• Likely Multiyear Housing Recovery
– No recession
– Job growth and household formation
– Lagging housing starts and continuing housing
shortage
• Home prices are primed to rise further, by
16% cumulatively in 2013 and 2014
27. Primary Drivers of Membership
• Existing Home Sales and Real Home Price
Growth
– Lagged effect
• Job Market Conditions
– More members if high unemployment
28. REALTOR® Median Gross Income
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
1995 1998 2000 2002 2004 2006 2007 2008 2009 2010 2011 2012 2013
est
How many with more than $100,000? … 200,000
How many with less than $10,000? … 360,000