Ever since the housing market has emerged from its pandemic-driven freeze in late spring, there has been a frenzy of home buying and a sharp rise in prices.
The common explanation is that the pandemic has swollen the ranks of those who need more private space for work and play and safety, typically farther from urban centers.
But why has that translated into fast-rising home prices all around? After all, if buying a new home means leaving behind an old one — an equal contribution to supply and demand — then what’s disturbing the market balance and driving up prices?
A number of factors are at work. Some are well known, and others — like innovations that speed up home buying — have been less noticed and seem as if they may last.
Click here for more information: https://www.nytimes.com/2020/12/03/upshot/home-prices-explaining-frenzy.html