- The housing market historically proceeds in a fixed order: interest rates lead sales, which in turn lead prices, which in turn lead inventory.
- Interest rates have persistently declined for the past 18+ months to all-time lows, which led to a sharp increase in sales by the end of 2019.
- After sales, price increases then began to accelerate after the early 2020 lockdowns.
- Inventory has not yet turned up, but should turn shortly.
- The explosive sales growth in housing foretells a strong economy throughout 2021, as soon as the pandemic is brought under control.
For further details see:
Housing Market Forecasts A Strong Economy At Least Through 2021, Once Pandemic Is Under Control