This isn’t the first time the US has seen a strong sales market. Something making it different this time is that the market is extraordinarily strong in every part of the country. Typically, the intense markets are found on the coasts but this time it is almost everywhere with the national average listing price hitting a new high in May 2021 when it reached $380,000 (Realtor.com). That is up 15.2% compared to last year.
How the Summer Market Got So Hot
Let’s look at the main drivers of this unprecedented Summer 2021 Housing Market (it’s a long list):
- Millennials are in their peak home buying years.
- Mortgage rates have been exceptionally low for a long time with the Federal Reserve continuing to support low interest rates.
- COVID turned our homes into offices, classrooms, and sanctuaries from the outside world.
- Construction workers were laid off during the pandemic – very few new houses have been built.
- Lumber prices are…