Despite the economic roller coaster of 2020, home prices have continued to rise this year. With home mortgage rates at all-time lows, more buyers have entered the market creating competition for a low inventory of homes. While home prices rising during an economic downturn is not unusual, the house price appreciation we’ve seen this year is more dramatic than during any economic decline in the recent past. As sellers become worried about lower prices, they take their homes off market causing a decrease in supply, creating a shortage. This shortage will in turn cause prices to rise as buyers compete for limited inventory. If home mortgage rates continue to remain low, more buyers will enter the housing market to compete for the small amount of homes currently available driving up home prices even further. This raises the question, will some buyers be priced out of the market?
