Opinion: June 23, 2021. What is Driving This Real Estate Market Boom?

The real estate market is booming. According to this article he typical house price is up about 15% compared to last year's price and the houses are staying 32 days less in the market before being sold. Additionally, the total number of homes actively for sale is 46% less than last year.

The question is, what is driving the price up? there are many possible answers for this, but it is possible that millennials in large numbers entering the buying market, together with an improved economy trying to leave the pandemic behind are driving this. Mortgage rates are still low. Also, there could be an inflationary pressure due to the excess dollars floating in the economy. Also, the current supply of homes for sale is low, creating a low supply/high demand issue.

The current trend expected to continue at least through the summer. By then the relative reduction in the purchasing power due to high prices will probably slow down the price increases.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.

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