At the beginning of the shut down caused by the pandemic, there were many who assumed home prices would go down. Even though we are now technically in a recession and with double-digit unemployment numbers home prices are still rising.
Part of the reason for this is even before the pandemic there was a shortage of homes for sale. I have written this like a zillion times but housing prices are being driven by supply and demand.
I remember the great recession and the crash of the housing market like it was last week. Those of us who sell real estate were strongly encouraged to be optimistic about the market no matter what.
It was horrible the way banks resold houses to people for way less than the people they were taken away from paid for them.
The people that bought the houses had smaller mortgage payments than the previous owners. Those previous owners may have been able to afford those lower payments.
It is hard to predict what will happen next in the housing market. All we can do is try to keep up with the news. optimism about the market isn’t going to make it better or worse. Right now we are in the seventh year of a seller’s market that keeps getting stronger as the demand continues to outpace supply.
The data used to make the graph is from the NorthstarMLS and is deemed reliable but is not guaranteed.