This article delves into the factors driving home price increases. According to the article, they are:
- Limited supply
- Increased input costs
- Increased demand
It's worth a read, but there are a few things I think they missed:
- Supply chain factors impacting the supply side
- Costs other than lumber, for ex: copper
- Impact of increased institutional buying
My points 1 and 2 I think are at risk of normalizing soon which should put some pressure on home prices. What other factors should be considered when trying to assess the next move in housing prices?
Is systematic leverage as high as it was in '08?
Submitted June 30, 2021 at 09:07AM by lasagnahog1 https://ift.tt/3drUgvm