House prices have skyrocketed across the globe during the pandemic. In the wake of the short but steep covid-19 recession, house prices have risen at record levels, hitting the peak increase of 19.3% in July. Noting the reasons for this increase, the IMF noted that low interest rates contributed to the boom in house prices, as did policy support provided by governments and workers’ greater need to be able to work from home. In many countries, including the United States, online searches for homes reached record levels. Along with these demand factors, house prices also increased as supply chain disruptions raised the costs of several inputs into the construction process.
Market Review: July 2022
August 01, 2022