US Housing Market to Continue Growing in 2021, 2022: Reuters Poll

A recent Reuters poll indicates that house prices in the US could continue their upward climb in the next couple of years, despite the economic damage caused by the ongoing coronavirus pandemic. Economists expect the US Case-Shiller house price index to rise by 5.7% in 2021 and by 4.6% in 2022 – the highest forecasts on record.

In addition, most of the analysts polled expected housing market activity across the US to pick up pace in the current year. Despite the latest wave of fresh infections that have hurt economic recovery in the near term, the risk of it holding back growth in the housing market was marked as low to very low by 85% of the poll’s respondents.

The demand for housing is expected to surge mainly on the back of expectations for economic recovery in 2021. In addition, the need for larger living spaces, Fed’s dovish monetary policy and the optimism surrounding the rollout of COVID-19 vaccines are also expected to support the growth in the housing sector.

Home prices across the US have been increasing fueled by a rise in demand even as supply of homes has contracted to a third of healthy levels. In October 2020, existing home sales soared to 7 million units – the highest level in almost 15 years, driving up construction activity to keep pace with the rise in demand.

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Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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