The nation’s surging home prices don’t seem to care about the recession the country is mired in. They can’t be bothered by the deadly coronavirus pandemic or the double-digit unemployment that’s come as a result. Instead, prices are defying logic, expectations, and even belief, as they shoot up to record highs amid an unprecedented health and economic crisis.
It has all led some to wonder: Are some markets getting too hot? Could a significant correction be around the corner?
Such questions have become louder in recent weeks, in the face of some startling growth numbers, particularly in some high-priced California and less expensive Rust Belt, Midwestern, and Southern markets.
With the massive migration from California, and other large metro areas, I think we’re just at the beginning of this new wave. Our biggest problem is that the builders and everyone else in the system (title people, county inspectors etc.) are overwhelmed and unable to keep up with the demand.
Meanwhile, I expect things will stay hot for the foreseeable future.