A typical household in the past two years saw about a 20,000 gain in equity. That's not an insignificant chunk. Homeowners see that wealth and use it to buy additional goods.
More Quotes from Lawrence Yun:
One thing that we noticed is the amount people put into down-payments, which was about 20 percent during the stock-market boom, rose to 22 or 23 percent when the economy declined. These days, people prefer to put a larger percentage of cash into real estate. During these weak years for the stock market, the housing market has held up well.Lawrence Yun
Our experience says prices do not go down when there's job creation in the local economy. In local markets where they are flat on jobs, they could see prices decline. But we're projecting 2.3 million new jobs this year. The job market is providing a buffer. It's a counter force to rising rates.
Lawrence Yun
Sellers are stubborn. It takes a long time for sellers to adjust their expectations.
Lawrence Yun
The market clearly has some legs left. Buyers who were sitting on the fence, hoping mortgage rates would decline, have decided to make the move now.
Lawrence Yun
People have been saying that for 20 years. But in San Francisco, it's very difficult to build, so there's a supply constraint. Seattle is also encountering a supply-constraint situation.
Lawrence Yun
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