While some are concerned that the national housing market has peaked and is headed toward another slowdown, the National Association of Realtors said that is purely speculative, regardless of recent sales declines in some regions.
“Markets should slow down; however, this is due in part to insufficient supply and swiftly rising home prices instead of weak buyer demand,” National Association of Realtors chief economist Lawrence Yun said in a news release.
However, the Killeen area market does not seem to be following this trend, as home sales remain steady.
“Our market only loosely follows the trends often pointed out by NAR,” Michael DeHart, executive director of the Fort Hood Area Association of Realtors, said Wednesday.
In November, there were 162 closed sales in Killeen, according to a monthly report published by the FHAAR. This number is down just slightly from October, when there were 168 closed sales.
In a separate November release, Yun attributed the national market decline to rising interest rates, saying that the existing homes market was the lowest it had been since 2015.
And while homebuilding has jumped 7.2 percent year-to-date to July, Yun says new construction nationwide is sorely needed to continue filling the gap.
“The answer is to encourage builders to increase supply, and there is a good probability for solid home sales growth once the supply issue is addressed,” Yun said. “Additional inventory will also help contain rapid home price growth and open up the market to perspective homebuyers who are consequently—and increasingly—being priced out. In the end, slower price growth is healthier price growth.”
“Rising material costs and labor shortages do not help builders to be excited about business,” added Yun. “But the lumber tariff is a pure, unforced policy error that raises costs and limits job creations and more home building.”