Why is the housing market so hot? 4 answers to the question vexing homebuyers
After a frenzied boom and a grueling bust, the housing market seemingly had resumed its spot as a low-drama corner of the U.S. economy. Then came the coronavirus pandemic, and housing got hot again — really hot.
The median price of homes sold by Realtors soared of 17 percent from March 2020 to March 2021 — a new record, according to the National Association of Realtors. The fast run-up raises an obvious question: Why are home prices rising so quickly?
Here are four fundamental factors pushing up values.
1. There’s very little supply of existing homes.
The coronavirus pandemic hit just as the 2020 spring selling season was about to kick off. Homeowners hit the pause button, creating a shortage of existing homes that has continued.
Now, There’s just a 2.1-month supply of existing homes for sale,…