Nar slams ‘restrictive’ us lenders

The supply backlog has reached record levels and US lenders are to blame, says the NAR…

The National Association of Realtors (NAR) was moved to criticize mortgage lenders after new figures revealed that sales of previously-owned US homes fell once again in April, with the number of transactions 1% lower than in March 2008 and down 17.5% on the year before.The national median existing-home price for all housing types was $202,300 in April, which is 8% below a year ago when the median was $219,900. Analysts predicted further price falls to come as a result of the increasing backlog of unsold homes.

Lawrence Yun, NAR chief economist commented: “Inventory rose 10.5% to 4.55 million homes. At current prices, that inventory would take 11.2 months to sell, which is the biggest backlog since the association began tracking family homes and apartments in 1999”
 
But Mr Yun still remained optimistic, highlighting recent changes to lending rules that will allow mortgage giants Freddie Mac and Fannie Mae to lend on a less conservative basis. Mr Yun said: "I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant”.

Earlier this week, the US Federal Reserve slashed its growth forecast, partly blaming the housing downturn. The central bank now expects growth of between 0.3% and 1.2%, down from the 1.3% to 2% predicted in February.