Here are six reasons we think housing prices will not be dropping anytime soon.
- The stock market is doing well and closing in on pre-pandemic highs.
- Over 50% of all job losses were among below home buying income level households. Some of those jobs are coming back, too.
- There is still a lack of supply of houses on the market. Low inventory points to prices staying flat or going up.
- We will probably have insanely low mortgage rates for the foreseeable future.
- 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).
- People suffering from cabin fever have realized that they may be permanently working from home are looking for bigger and better.