. Those two dynamics sparked the buying spree seen throughout the back half of 2020 and early 2021, Nothaft said.'s emergency rate cuts and purchases of mortgage-backed securities threw fuel on the housing market's nascent flames. And as prices began to climb, more buyers emerged, looking to take advantage of record-low mortgage rates while they lasted.
Prices set several record highs through 2021 as extraordinary demand slammed into inadequate supply. Accounting for inflation tells a similar story. The inflation-adjusted index surpassed its 2006 peak during the pandemic and continued to climb through May. To start, homes are spending mere weeks on the market when they used to spend months. Median days on the market totaled just 16 through the four weeks that ended August 1, according to real estate website
Behind both data points are the frenzied bidding wars that have become the new normal. Rapid-fire battles between interested parties have sidelined buyers who don't have the time or money to compete. That winner-take-all environment only exacerbated the months-long housing crisis, Logan Mohtashami, lead analyst at Housing Wire,"Buyers talk about how they can't win the bid. They make good money, it's not like they're struggling.
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