– 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

COVID made people realize that being trapped in the city wasn’t as fun as it used to be. Part of the surge was people wanting a yard, and working remote meant they could leave the cities.

These things snowball too. After you lose a house with a full price offer you start offering over asking. And suddenly everyone’s doing it. Kind of like panic buying of bread and milk before a storm.