Housing Market Blog
Due to less time available, blogs will now be released once a month. This shift will allow me to create new and more insightful blogs. Thank you for understanding.
The housing market is a modern integral part of society. As I went over in my “Opinion: Investment in the Housing Market” blog, the movement of money necessitates that investment into the Housing Market is necessitated by the modern movement of money. However, investment in the housing market will only continue to occur if the incentive, a return on investment, has a high outlook and will be overall beneficial. To allow for this, the housing market outlook is essential to understand; this blog will use various sources and certain data points to conclude the market outlook. My conclusion will NOT be professional advice, but rather a summary of observations I have made.
The median prices for housing have gone up over the past several years, starting at around 165 K in 2000 and are now 410K (as of April). Prices have gone up over the past years, despite drops such as the 2008 Housing Market Crash, causing an around 30K drop in the median price within a single year; however, the prices hadremained int the 200 K range. Until around the end of Q2 in 2020, the median home price had not yet risen above 330K; then the Covid-19 pandemic caused a rapid spike in home prices. Within a year and a half, the prices rose from around 310K all the way to 414K, the greatest spike in the history of the median home price. Since then, however, the median price has begun to trend overall downwards; however, that does not mean you should immediately invest in the market.
Another factor to take into account is the supply of housing available; the number shows how long it would take for all the houses in the market to be sold if no more were built, so essentially the lower the number, the higher the demand. The demand has fluctuated across the past several years; however, it has gone up (extremely wide outlook). Since around November of 2023, the demand has stayed overall the same, at around a range of 8-10 months; as of most recently, for August, the number is at 5 months. Looking holistically, demand increases the most when the price tends to go up; demand goes down when prices go down. For example, when prices were at their lowest, around the 2008 housing market crisis, it would take around 12.2 months for all available houses to be sold. On the flip side, when housing prices spiked around the 2020 pandemic, the time to sell all available houses had fallen dramatically.
The relationship here is counterintuitive at first; however, it makes sense, as fewer people sell their houses when the market is high because they do not plan to buy an expensive house. This in turn causes fewer houses to be on the market, and thus less time to sell them. My two cents: buy houses while the market is low, wait for a spike, then sell immediately, because anyone looking for a house will have to pay the price tag you put on it, which can be high when the market is high. Do all this while staying reasonable and moral, obviously.
The housing market works similarly to the investment market. Buy low, sell high; remember, houses are real assets that people need. In the long term, renting a house is more profitable than keeping it to sell. The best plan is to buy low, rent when the market is too high for people to purchase, then sell the house when the market is at its peak.
“Median Sales Price of New Houses Sold for the United States,” FRED, 24 Sept. 2026, https://fred.stlouisfed.org/series/MSPUS.
“Monthly Supply of New Houses in the United States,” FRED, 24 Sept. 2026, https://fred.stlouisfed.org/series/MSACSR.
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