Extraordinary and unexpected pandemic increase in house prices...

[Account Closed]

Here is an article by Don Layton: Senior Industry Fellow at Joint Center for Housing Studies of Harvard University: "The extraordinary and unexpected pandemic increase in house prices: causes and implications" Click here to read the article: Harvard University

It's a fascinating read for anyone trying to understand our current residential real estate environment and why some markets are seeing crazy appreciation during the first 4 months of 2021. As a residential real estate investor since 2001 this current real estate market makes my head hurt because it makes no sense. This articles helps explain it a bit...

[Russell Brazil]

Originally posted by @Bill B.:

Check out just about any thread with afraid of peak, looking to buy afraid of peak, should I wait to buy, should I wait for the coming foreclosure crisis to buy, foreclosure crisis coming sell now, there are at least 50 threads with those titles. And you’ll see the same people arguing there wasn’t one coming and stating most of the arguments I listed above. 

Along with my favorite I forgot to list. Someone selling doesn’t make any more inventory unless that person is moving in with someone else, otherwise they’re just a buyer and a seller.  Reminds me of when the new reporters say “there were more sellers than buyers today as the stock market went down.” Nope, there were exactly the same number. :-)

 Yup, Im one of the people whose beeb responding to those crash posts for a looong time now. 

Our market slightly slowed in March 2020, then continued in April 2020 on its normal hot trajectory. We went from 6 weeks of inventory in February 2020 to 3 weeks in April 2020 in DC. Cut the supply in half, and rising prices were the only logical outcome.

Now in addition to an inventory crisis, we have an inflation crisis with material costs increasing immensely and quickly, which will and is leading to further price increases. This is going to be a multi year issue of rising prices.