U.S. home sales likely to hit record high of $2.5 trillion in 2021
To put $2.53 trillion into perspective, it's roughly equal to the value of Amazon and Facebook combined, or the 2020 gross domestic product (GDP) of France.
The U.S. housing market has undergone a meteoric rise during the coronavirus pandemic, fueled by record-low mortgage rates and a wave of migration made possible by remote work.
Almost two-thirds (60%) of people expect to continue working from home at least part time after the pandemic, according to an April survey of Redfin.com visitors who have moved to a different metro area in the last year.
These factors—alongside an acute housing shortage—helped March become the hottest month in housing history, with home values, price growth and selling speed all hitting new heights.
In short, the combination of rising demand (home sales) and surging home prices is fueling the increase.
While home prices could grow more slowly if mortgage rates rise, that would result in a more balanced housing market, which could actually lead to more home sales, according to Redfin Chief Economist Daryl Fairweather. ■