WASHINGTON — The U.S. housing market remains “severely” out of balance, hampering economic recovery, and while a longer-term policy needs to be defined, balancing supply and demand is an “immediate priority,” Elizabeth Duke, a member of the Board of Governors of the Federal Reserve, said Thursday.
“Regardless of how we got here, we, as a nation, currently have a housing market that is so severely out of balance that it is hampering our economic recovery,” she added.
Duke said the combination of high inventories of homes for sale and the high proportion of distressed sales suggest downward pressure on house prices.
