There’s no denying that today’s housing market is anything but normal.
Seemingly overnight, the Millennial generation, long known for putting its buying plans on hold, was ready to become homeowners.
And as more young people started buying homes, flooding cities across the country with record-high buyer traffic, there was one hang-up: there wasn’t enough inventory to match their demands.
That inequality in the market is the root cause of the price appreciation that has many worried we’re in another “housing bubble.” But unlike 2008, the rise in home values was warranted. It wasn’t price inflation. It was price appreciation caused by simple economics: a lack of supply and high demand.