Home prices are skyrocketing in the US, but the ongoing pandemic has dictated the terms of the trend. Large cities tend to witness a rise in home values because the trend is more demanding and leaner. As of now, this is not the case. Federal Housing Finance Agency has reported that smaller metro towns are seeing immense growth and strong price gains. Prices in smaller metro cities have risen by at least 10 percent in those areas when compared to the previous years’ numbers. These cities have been more affordable, and they have lots of houses in inventories for sale. This makes the sudden spike in prices more striking.
Work from a home culture has contributed majorly to these sudden changes as the employees can now work from anywhere. People are now migrating in large numbers and moving towards smaller towns where they can find more space and land for less money. The complete impact created by the pandemic is yet to be determined, but the data that we have received so far from the last few months have remained very consistent with what the virus has encouraged so far. Due to the sudden rise in prices, previously affordable markets have become less affordable now.