When I saw this quote by Lawrence Yun, NAR chief economist two weeks ago in the Existing Home Sale Press Release, I was surprised. I didn’t write about it but ran into someone a few days ago who pointed out the same thing so I was inspired.

The home price growth is too fast, and only additional supply from new homebuilding can moderate future price growth.

My reaction:

1. I agree that price growth is too fast. Incomes are stagnant.
2. This partially makes up for him classifying the housing slowdown as temporary back in 2007.
3. When someone who is generally biased towards the positive, goes negative, that’s a red flag.