– I keep hearing the housing market in the USA had such a price surge because of demand increase and a lack of housing. Why did happen all of a sudden? There wasn’t some huge increase in people too.

Question

Secondly- What would it take for prices to change?

In: Economics

Answer 1

My area PNW during Covid a lot of people moved to our state. People offering 20-50k over asking price. Prices kept going up and people were still offering over asking. It was just insane. My buddy bought a house 1 year before Covid for 350k. Sold last year for 800k with no improvements. 80k over his asking price.

My realtor said a lot of Californias were moving here after selling their over priced homes. I’m not sure if that is the real cause. Also affected a couple other states Idaho, Oregon, Montana to name a few. Houses in my parent’s neighborhood just went up 150k from what they were listed 6 months ago. Houses are still getting bought up quick as long as they are under 1mil. Bought my house in 2010 after leaving the army, 235k now it’s worth 750k.