CHAPTER 7 Housing Market Changes et Changes
Over the last two decades, real estate has experienced some major shifts in the value of houses due to the ever-changing fluctuation in the price of homes and a sometimes-unstable market, causing either a boom or bust for investors in real estate. In the early 2000s, there was an unprecedented increase in the prices of real estate, resulting in an eventual burst of the real estate bubble in 2006 and the beginning of an even greater financial crisis. A deep fall in the prices of real estate followed immediately, with the Case-Shiller Home Price Index losing 33 percent from its 2006 apex to the 2012 rock bottom. Investors flooded back to real estate, knowing full well that getting in at this lowest point could be very lucrative for them. At the start of the housing recovery in 2015, there has been a steady increase in home prices in the national real estate market. However, as we have seen in a post-pandemic world, the real estate market has experienced a major change and house prices have skyrocketed. One might ask, "is this the new normal"? Doubtful. The housing market, like most markets, is cyclical and will eventually stabilize once again. The 2021-2022 real estate market has experienced an unprecedented number of factors influencing home inventories and buyer demand. Let's review some of these outside influences. • Buyers are reentering the housing market after putting their home purchases on hold during the pandemic
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