‘Supply problem’ is keeping housing unaffordable, expert says

Source: Yahoo! Money — 

While many forecasts point to home prices declining next year amid slowing home sales, housing will remain unaffordable for many homebuyers, according to one expert.

“We have a supply problem with housing,” Marc Norman, associate dean at the NYU Schack Institute of Real Estate, told Yahoo Finance Live (video above). “We’ll see the price declines, but I think the income gains that we are seeing lately are still not keeping up with the prices that we are seeing in the market — in most markets.”

New home listings declined by 22%, according to a Redfin report. There are over 2,000 fewer homes on the market this month than in December 2021, according to the brokerage’s calculations.

“We’re in a place where the housing can’t keep up with the demand,” Norman said.