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Originally Posted by Rutuu
The same thing was happening here with home inspections. The market has cooled slightly with changes to the banks, so now demand has followed and home inspections are back.
Interest rates will be up this year and that will hit demand.
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As long as inventory stays super low prices will remain very high. IMO reopening post covid won't have all that much of an impact. The issue is demographics and baby boomers not downsizing as they become empty nesters.
The millennials are the biggest cohort ever, and that are increasingly starting to have kids and demand more space. You've also got lots of gen xers who have been trying to buy for a while, and their incomes are increasing as they turn 40. Even people from Gen Z are starting to have children.
In places with lots of land, I could see prices easing, once construction costs come down and houses are eventually built. That's a multi year process though, and who knows where inflation and interest rates will be by then.
I do agree that the market has cooled, but it seems like only because prices are now much higher.