How many times have you heard this statement? While housing prices may slow down, they won’t collapse. Fundamentally, the economy – despite struggling during the initial impact of the COVID-19 crisis – is robust. In particular, the labor market has printed red-hot numbers. If anything, housing prices might even rise due to the pressing supply demand equation.
According to Wall Street Journal contributor Neil Barsky, rather than worry about a potential bubble in real estate, we should be talking about the “…serious housing shortage and housing affordability crisis.” Barsky goes onto explain as follows:
