Pandemic-era home values soared 8-12% annually because seven factors aligned simultaneously: historic low rates, remote work flexibility, inventory shortage, government stimulus, stock market gains, constrained supply, and millennials hitting peak buying age.
Drivers
- Interest Rates: 2.5-3.0% (lowest in history)
- Remote Work: Location flexibility
- Inventory Shortage: Supply constrained
- Government Stimulus: Buyer purchasing power
- Stock Market Gains: Wealth effect
- Low Supply: Fixed inventory increasing demand
- Demographic: Millennials reaching peak buying age
Seven factors compounded.
Result
8-12% annual appreciation 2020-2021.
Unprecedented market conditions.
Appraisals
Rapid appreciation creates appraisal challenges.
Comparables age quickly in rapid appreciation environment.
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Why did values soar? Multiple factors created perfect storm. Contact me.