(Bloomberg Opinion) — The housing market is booming. Is this another indication that the recovery from the Pandemic Recession is complete for the rich, while low-income households are left behind? No, it isn’t.
It’s primarily driven by the usual suspects in any market: supply and demand. But serious challenges are looming for low-income homeowners. Expect a wave of foreclosures in 2021.
A slew of recent data shows that in the U.S., housing is going gangbusters. Sales of existing homes increased by 9.4% in September to 6.6 million units on an annual basis, its highest level since May 2006. The median existing-home price was 14.8% higher than in September 2019.
New-home sales slipped in September relative to August, but are up 32.1% over the year. Seven in 10 homes sold in September were on the market for less than one month. In