The COVID-19 pandemic had a significant impact on the real estate market. As many employees were required to work from home and more Americans found themselves at home many more hours of the day, they decided it was time to make a move. Perhaps to a house with more space for a home office and more space for the all the family members spending more time at home to spread out. As a result, demand increased yet supply could not keep up. Naturally, in turn, home prices increased as well.
As Americans feel a slight return to life before the pandemic, the question is, do they still feel that it is a good time to buy a home. Are Americans leery about the market taking a downturn and perhaps adjust itself? An article published by Realtor.com indicates that Americans remain optimistic about the upward trend of home prices. “Gallup’s survey found that 71% of Americans believe that home prices are going to increase over the next year in their local market” writes reporter Jacob Passy.
Further, more than half of Americans surveyed by this Gallup poll indicate that now is still a good time to buy a home, 53% to be exact. Only 50% of Americans felt this way last year at this time. Despite reports that home ownership is still viewed as a preferred long term investment, Google has found a significant increase in internet searches revolving around the possibility of a real estate crash. Indicating U.S. homeowners or potential homeowners are still keeping an eye out for a change in the real estate market.
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Could a housing market slowdown, or worse a housing market crash, be looming? If Lawrence Yun’s, National Association of Realtors chief economist, analysis is correct, the answer is a resounding “no”. In fact, the slowdown in the housing market that some areas are experiencing is due to “insufficient supply”, not a lack of demand by buyers.
In an article published by Realtor Magazine, many positive signs for the housing market are present. For example, the article states “home price growth remains strong in markets across the country—about 5 percent on a nationwide basis so far this year”.
However, the negative effect of the lack of housing supply is that the prices are being driven into price ranges that price some buyers out of the market. A solution to that issue,the article notes , would be to have builders increase the supply of homes available.
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