Many factors are, of course, at play in regards to the skyrocketing housing market. First and foremost on most people’s minds is: Will there be a correction?
According to Natalie Campisi of Forbes, “What happens in the coming months and even years will depend on several factors: the pace of new construction, the strength of the economy, more homeowners willing to sell and waning demand, to name a few. But even with an uptick in new home construction, it’s unlikely to meet demand. This will keep prices elevated for some time.
As far as buyers, people who could afford a home pre-Covid were most likely still in good financial positions to buy a home during Covid. The downturn and job losses hit low-wage workers the hardest, or those who already couldn’t afford a home. This means, unless there’s a recession, the level of demand likely won’t taper off anytime soon.”