According to Lawrence Yun, the Chief Economist of NAR, the organization is in discussions with congressional members to explore the possibility of providing some form of tax relief for sellers. The goal is to stimulate homeowners' willingness to sell and increase the overall supply of housing in the market.

This policy initiative aims to address the long-term housing shortage, making homes more affordable for a larger segment of the population, and also benefiting stakeholders such as real estate agents.

Currently, one of the reasons U.S. homeowners are hesitant to sell is that their mortgage loans are locked in at fixed rates significantly lower than current rates. This lack of incentive for homeowners to sell has resulted in a shortage of supply in the real estate market, contributing to high housing prices.

The proposed tax relief policy by NAR would be temporary and designed to encourage homeowners who have owned single-family homes for an extended period to sell to owner-occupiers.

According to a report by NAR, this policy measure could potentially bring about up to 640,000 additional homes to the market. The NAR board has approved four tax policy proposals, including this incentive.

However, NAR faces challenges. Firstly, the organization's proposal requires the support and approval of congressional members, which may not be straightforward. Secondly, in some areas where there is an oversupply of real estate, increasing the housing supply could potentially further decrease property prices. Additionally, the policy may lead to reduced government tax revenue, potentially causing fiscal concerns.