Will Housing Prices Coninue to Rise, Plateau or Crash, and When?
The Pandemic has certainly had an effect on the housing market. San Antonio has seen a 22% increase in the average sales price from a year ago. Government efforts to stave off a recession have kept interest rates low and pumped tons of cash into the economy. That, along with people spending more time at home has fueled demand for bigger and nicer homes, or at least a home that's owned and not rented. On the flip side, the expectation of a slow down, difficulty retaining workers and operating hours, and difficulty acquiring and transporting goods needed to build houses has greatly limited the supply. Inevitably, low supply and high demand has lead to a rise in prices that has really taken off, especially these last few months as things begin to reopen and people feel more confident about the future. The question is, how long will prices continue to rise? Is a crash in store or will things just level off for a while?
What do you think?