Another Housing Bubble On The Horizon?
Housing experts are alarmed at the rapid increase in home prices during the pandemic which many view as unsustainable. (The Hill)
“Home prices rose 12 percent year over year in February, the fastest rate since 1996, according to the most recent reading from the closely watched S&P CoreLogic Case-Shiller home price index.
“We really sort of exacerbated this imbalance where demand was really strong but supply was unbelievably constrained,” said Mike Fratantoni, chief economist for the Mortgage Bankers Association.”
Housing, specifically affordable housing, is in scarce supply and forcing many potential home buyers to wait it out. The ability to purchase a home in the Covid era is now reserved for those with large savings or people who are selling their existing home and cashing out significant equity. The housing debacle is indicative of a nation that has inequality interwoven through the very fabric of society with virtually no easy fixes. Any solution will require an insane amount heavy lifts and lots of will power.
