US home prices defy this economic downturn and are riding out the chaos, supported by record low mortgage rates and limited supply, according to a new poll that showed housing outpacing consumer price rises this year and next.
The US housing market, which was at the epicenter of the prior financial crisis that led to a global recession, is expected to remain a bright spot in this downturn as the C-10 coronavirus chaos continues to dampen the economy.
According to the 9-19 June poll of over 40 housing strategists, house prices will rise 3.0% this year and next.
The forecast is stable, given the US economy is taking its worst hit on record and unemployment rose to levels not seen since the Great Depression.
“Housing demand is coming back in dramatic fashion, with homebuilders in markets all around the country reporting a bounce-back in demand in May and June.”
Price reductions will be mostly confined to the lower tranches of the market, and most of the unemployed were not existing homeowners or looking to buy a home before the medical emergency hit.
These inflation-beating projections come with mortgage rates at record lows and a persistent undersupply of homes.
Have a healthy day, Keep the Faith!