Industry News
Homeownership is a cornerstone of the American dream, but it remains out of reach for many due to the nation’s severely limited housing inventory. The United States is currently facing an underbuilding gap of 5.5 million units, equating to a staggering $4.4 trillion underinvestment in housing. To bridge this gap and make homeownership accessible to more people, we must take decisive action to increase the housing supply.
The Role of Tax Policy in Promoting Homeownership
America’s tax laws play a crucial role in promoting homeownership, building stable communities, and boosting economic growth. The National Association of Realtors (NAR) is championing several bipartisan tax bills designed to address these challenges and provide effective solutions. Here’s a look at the key legislative initiatives NAR is advocating for:
1. The More Homes on the Market Act (H.R. 1321)
Innovative tech showcases and networking opportunities await at iOi Summit in Chicago
CHICAGO (May 13, 2024) – The National Association of Realtors® today opened applications for the “Pitch Battle” competition taking place at the 2024 Innovation, Opportunity & Investment (iOi) Summit(link is external), the premier event for real estate technology. The sixth annual iOi Summit will take place August 28-29 in Chicago, Illinois.
The Pitch Battle competition, presented by NAR’s venture capital arm Second Century Ventures(link is external), provides a distinctive platform for real estate startups to demonstrate innovative solutions to leading investors, real estate professionals and technology enthusiasts.
“NAR is committed to fostering innovation in the real estate industry, and the Pitch Battle competition is an excellent opportunity for startups to shine,” said Alex Lange, NAR vice president, strategy and innovation. “Companies can showcase their forward-thinking solutions while receiving invaluable exposure and feedback from influential investors, practitioners and tech experts.”
In April, existing-home sales experienced a slight decline across the United States, as reported by the National Association of REALTORS® (NAR). All four major U.S. regions saw month-over-month decreases. However, the West was the only region to post a year-over-year increase in sales.
National Overview
Total existing-home sales, which include single-family homes, townhomes, condominiums, and co-ops, dropped by 1.9% from March, reaching a seasonally adjusted annual rate of 4.14 million in April. Compared to April 2023, sales also fell by 1.9%, down from 4.22 million.
NAR Chief Economist Lawrence Yun noted, "Home sales changed little overall, but the upper-end market is experiencing a sizable gain due to more supply coming onto the market."
Inventory and Prices
At the end of April, total housing inventory rose to 1.21 million units, a 9% increase from March and a significant 16.3% rise from the previous year. The unsold inventory now represents a 3.5-month supply at the current sales pace, compared to 3.2 months in March and 3.0 months in April 2023. Notably, for homes priced at $1 million or more, both inventory and sales saw substantial increases of 34% and 40%, respectively, from a year ago.
The classification of REALTORS® as "independent contractors" is a common practice among brokerages, with about 89% of National Association of REALTORS® (NAR) members falling under this category. However, this status has recently faced increased scrutiny due to lawsuits and proposed federal legislation. A recent case in New Jersey, however, may have set a significant precedent for the industry.
In a landmark decision, the New Jersey Supreme Court ruled in favor of maintaining the independent contractor status for real estate agents, thanks to advocacy efforts by New Jersey REALTORS® and support from NAR. This ruling stemmed from a 2019 lawsuit where a Weichert Co. sales associate claimed misclassification as an independent contractor, alleging unlawful deductions from commissions due to this status.
