The Housing Market May Be Cooling, but an Affordability Crisis Looms
- The housing market is showing signs of cooling, but inventory is still tight, pushing prices up.
- Prices could stay high because of inflation and investor activity, locking Americans out of homes.
- The eviction and foreclosure moratoriums ended on July 31, further exacerbating a housing crisis.
In March, home prices surged at their fastest pace since 2005, and Google searches for “when is the housing market going to crash?” spiked 2,450%.
One year into the pandemic, one thing is clear: Uncertainty ushered in a housing boom bolstered by the desire to have bigger, better spaces to quarantine and record-low mortgage interest rates. The result was dwindling housing inventory and home prices so eye-popping that many were left wondering…