Why is the housing market so crazy right now?

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Why is the housing market so crazy right now?

1. As mentioned, when it comes to existing homes, supply is small. The COVID-19 pandemic hit just as the 2020 spring selling season was about to kick off — and the coronavirus situation prompted some homeowners to hit the pause button, creating a shortage of existing homes. That trend has continued on.

Is the housing market going to crash in 2021?

Current Growth is Not Sustainable, But a Crash Is Unlikely Moving into the homestretch of 2021, Fannie Mae predicts that home prices will rise by just 7.9\% between the fourth quarter of this year and the same time next year at the end of 2022 — “just” being a subjective term.

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Is a housing crash coming?

The housing market is unlikely to crash in 2022. “There are far too many people coming up in age, and certainly many already there, that want their own place to live,” he explains. According to the latest projections by Fannie Mae, 6.8 million homes, both new and existing, are expected to be sold by the end of 2021.

Is it time to worry about the housing market again?

Demand is extremely strong from first-time homebuyers, trade-up buyers, and institutional investors. Therefore, it’s time to start worrying about the housing market again. If you plan to buy a house, it’s worth thinking about what could go wrong. This way, you won’t get blindsided in case things do.

How wild is the US housing market right now?

H ow wild is the U.S. housing market right now? So wild, half of the houses listed nationwide in April went pending in less than a week. So wild, one poll found that most buyers admitted to bidding on homes they’d never seen in person.

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Are there a lot of new homes on the market?

Housing starts are back to their highest levels since before the Great Recession, even with lumber prices in the stratosphere. Although there aren’t a lot of homes on the market, there are a lot of new homes on the way—buyers just need to be a little patient.

Will the housing market slow down in 2021 and beyond?

The housing market did end up slowing down in 2018-2019. I’m revisiting this topic in 2021 and beyond because the outlook has dramatically improved. As a result, if you plan to buy a house, it’s worth thinking about what could go wrong. This way, you wont get blindsided in case things do.