Home Prices Skyrocketing Because Of Low Mortgage Rates, Not Because COVID-19 Increased Demand For Large Homes
Home prices are skyrocketing in most U.S. markets despite COVID- 19, a recession and a shockingly high unemployment rate.
Many analysts are speculating that part of the boom in house prices is caused by COVID-19 – that some people are concerned about COVID-19 contagion and don’t want to live any more in tight, multi-family buildings so they’re buying single-family homes in the suburbs. Another theory along the same lines is that because working from home has skyrocketed, some people want more space so they’re buying larger single-family homes, especially if their kids are home all day, too. This seems to be happening in metro New York City but what about places that weren’t hit as hard by COVID-19 and aren’t as dense as New York City?
Certainly the lower mortgage interest rates are a huge part of the current home price