6 Reasons for Optimism in House Prices in the Short Term

Here are six reasons we think housing prices will not be dropping anytime soon.

1. The stock market is doing well and closing in on pre-pandemic highs.
2. Over 50 of all job losses were among below home buying income level households. Some of those jobs are coming back, too.
3. There is still a lack of supply of houses on the market. Low inventory points to prices staying flat or going up.
4. We will probably have insanely low mortgage rates for the foreseeable future.
5. Pent-up demand is a real thing. It’s a combination of people looking before COVID-19, people waiting for prices to drop for the past few months, and people who sat around in quarantine for months thinking about an upgrade (see number 6).
6. People suffering from cabin fever have realized that they may be permanently working from home are looking for bigger and better.