Is The Housing Market About To Crash?
COVID-19 and the lockdown-induced recession had enormous impacts on the American economy. Beyond the massive increases in federal spending, skyrocketing inflation, delayed supply chains, and unemployment, the shutdowns severely disrupted the housing market — making home ownership even less affordable for the middle class.
Now, the Federal Reserve is warning of a housing bubble as average home prices soar above half a million dollars. Are their fears justified? If so, what could that mean for your family?
Supply and Demand
When COVID-19 hit the United States, the housing market saw a moderate decline in home prices — $383,000 in quarter 1 of 2020 to $374,500 in quarter 2 of 2020, to be exact. By quarter 3, however, prices neared $400,000 and quickly began to rise at a meteoric pace. By quarter 1 of 2022, the average price of a home was $507,800 — a 33% rise in only two years.
One Zillow report revealed that the average American home was only staying on the market for six days during the summer of 2021. In some cities — such as Cincinnati, Kansas City, and Columbus — the typical period on the market was as low as three days. – READ MORE
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