Reply to Are home prices really rising?

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Reply to "Are home prices really rising?"

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[quote=Anonymous]Its a transient supply and demand factor.

Inventory is very low because many people are afraid to move. Seniors are afraid to move into a condo or assisted living facility. People are avoiding changing jobs that require a move out of state. In reverse, companies are not recruiting/hiring and moving people in. Renters who can not pay are not being evicted and landlords can't sell even if they are behind in their mortgage because of the eviction moratorium. There is such little peer interaction through distance learning that parents in less desirable school clusters are less inclined to move to a better cluster until things resume in person. Sellers don't want to have workmen in their homes to update to sell or people going through their home looking to buy.

Demand is up because people in condos or even townhouses feel unsafe with COVID or are desperate for more space. Demand is also enhanced by the low interest rates. Demand for flipped (even cheaply flipped), fully upgraded or new homes is extremely and unusually high because people don't want to live through in home work during COVID.

When interest go up and taxes go up (which they have to because every state and local municipality has been financially devoted by COVID) buyers will have less buying power. This could very well happen at the same time people start moving again which puts a back log of houses onto the market so inventory will be up. [/quote]

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