Pent-up demand builds as existing home sales lag behind historical highs

The United States housing market is accumulating significant pent-up demand while annual existing-home sales track near four million units, according to HousingWire. National Association of Realtors chief economist Lawrence Yun reported the trend on Friday during the organization's NXT conference in New Orleans. [1]

HousingWire reported that current annual home sales remain well below the 5.2 million units recorded in the year 2000. Yun noted that overall housing wealth expanded from $7 trillion to $35 trillion over the same period. [1]

Macroeconomic factors expanded over the past quarter century alongside the drop in transaction volume. HousingWire reported that the U.S. population grew from 281 million to 350 million while total payroll jobs increased from 132 million to 159 million. [1]

First-time buyers currently account for 22 percent of purchases, according to HousingWire. Available housing inventory has simultaneously risen to its highest level since 2015. Yun indicated that market activity could unlock if mortgage rates ease and consumer confidence recovers. [1]