Before Covid, the housing market was experiencing high prices and growth. In fact, most homes increased in value at all time records. Once Covid hit, one would expect this market to take a hit like many others did. However, we were wrong.
Covid has actually increased housing prices as the pandemic boosted housing market activity in a way not seen in recent history. Moreover, during the third quarter of the year 181 metro areas tracked by the National Association for Realtors was "higher in the third quarter from a year earlier."
Houses have appreciated at record highs for a long period of time now surpassing the predicted decline in the market. Do you foresee any signs of slowing down in the future, or will this market just continue to increase because if a pandemic cannot stop it, what can?
https://www.wsj.com/articles/home-prices-are-rising-everywhere-in-the-u-s-11605220823
4 comments:
I believe the housing market will slow some once the pandemic is over. The reason for the rise is attributed mainly towards the pandemic as with a virtual workplace people are able to move out of crowded large cities where outbreaks are worse. Additionally with the amenities either closed or restricted in larger cities, people are likely changing preference to home ownership as a better place to spend time. Once the pandemic is over and amenities in cities are able to return to what they once were I believe we will see an increase in rent prices again and a decrease in home sales.
The virus has affected many things differently but housing has done well due to people needing spaces to quarantine and set up shop, office in different areas. There might be more to this than what I said but I feel like housing will take a major dip once the pandemic is over. However, let's hope for the best!
The demand for houses increased because people had to stay at home because of the lockdown for a long time. Most people realized they needed a bigger house for their family. Especially with 'work from home' becoming the new normal, people are want to improve their living conditions by moving to a bigger or better house.
I believe that once interest rates start going back up we will see a decline in the demand of the housing market. People are taking advantage of the really low interest rates to build or move into a new or bigger house they have wanted. The pandemic is forcing people to spend more time at home so they want a space they can enjoy.
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