Many people are curious about real estate prices. Some are asking if there’s going to be a crash, or a boom.
Firstly, let’s look into what is currently happening right now — also, the most important thing to understand for gauging prices is the supply and demand. As soon as the ‘Pandemic’ broke out, we quickly watched an increase on the home that were currently up for sale, being ‘pulled’ off the market, more than ever before in history.
When consumers caught wind of the Coronavirus, there were complications between home owners didn’t want strangers in their houses, and no one had confidence in finding a new hope — avoiding the risks of catching COVID. New construction stopped across the country and as a ripple effect, we had a message reduction in supply. Shortly after, The Fed came in and lowered rates which would than enable then enable investors to take out more loans, because buying homes are now cheaper thanks to The Fed.
So now that the demand has increased, the supply quickly shrank — and as a result, home prices went higher. The last 6 months have shown us this is a trend, and it is looking to continue. So as the demand has gone up, we see some of the lowest inventories ever recorded in history.
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