Home price have surged in most markets across the country. What should investors do?
The problem with giving a good answer is that there aren't any good reasons why prices are higher. It's a pandemic phenomenon that's unrelated to ordinary economic factors - and therefore we don't know how it will develop.
One thing we do know is that there isn't a great surge of pent-up demand. Last year 5.5 million homes were sold, just a few hundred thousand more than in previous years; this year it's likely to be close to 6 million, well within the normal range. 8 million homes changed hands the last time home prices rose across the board, in 2007, when the big bust in real estate was just around the corner.
All sorts of pandemic behavior might prompt this wave of higher prices. People may buy a home to leave an apartment, or to escape to a second home, or because a down-payment accumulated with money they couldn't spend, or maybe people just spent too much time cruising real estate sites.