Why Home
Prices Are Rising During the Pandemic
https://www.wsj.com/articles/why-home-prices-are-rising-during-the-pandemic-11588671002?mod=trending_now_pos1
Updated May
5, 2020 11:41 am ET
This article was regarding the rise in prices of home in the
mist of a pandemic. This article was interesting due to the fact a lot of business’s
are taking a hit an it seems like homes sales are still hanging in there. The
article stated that, “The median home price rose 8% year-over-year to $280,600
in March.” However, the demand for homes did the opposite and fell 8.5% from
February to March. WSJ sought the help from Zillow as to why prices of homes
have been increasing while the demand has been decreasing. They believe the
reasoning could be because contracts to buy homes are usually drawn up and
signed the month prior to the actually purchasing the home. Therefore, we
wouldn’t see the effects of prices of homes until May.
The reason I chose this article is because this is a prime
example of supply and demand. This relates to marketing, business, and finance
all in one. Plus, this is the industry I work in and I love to read and keep up
with what is going on in the market regarding mortgages.
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