Over 70% of U.S. adults — a record high — expect their local housing prices to increase this year. In April 2020, just 40% of U.S. adults predicted a rise in home prices, according to Gallup. The previous record high of expectations was in 2005 — right before the 2008 economic crisis.
As we approach peak buying season this summer, only 53% of Americans believe that now is the right time to buy a house — a mere three-percentage point increase from last year’s record-low. Demand in the housing market surged during the pandemic, driven by cuts in interest rates and a renewed desire from people to invest in their home life during pandemic-related lockdowns. Yet, the supply of available housing could not keep up with demand, which has led to bidding wars — and houses selling for hundreds of thousands over value.