Search volume increased by 2450%, and when will the US housing market collapse?

Due to the COVID-19 pandemic, the U.S. housing market has entered a white-hot stage. In February of this year , U.S. house prices increased by 10.4% over the previous year, the largest annual increase since 2006, making American consumers increasingly worried that the real estate market will experience a price bubble, or even burst at any time.

This situation is well-founded. According to Google data, the most searched question by Americans recently is "When will the real estate market collapse?" In the past month, the search volume for this question has soared by 2,450%.

In another sign that the U.S. housing market may be in a bubble, searches for "How much above asking price would I need to pay when buying a home in 2021" jumped 350% in the same week.

This situation also shows that Americans' economic consumption level is recovering, and real estate has become one of their largest consumer expenditures. The prices of related home products and materials needed for home decoration may also be affected by this.

Another data shows that among the 100 largest real estate markets in the United States , nearly 75% of homes have annual price growth rates of 10% or more , which also shows that the markets with the largest price increases may face the greatest risks. In addition , 42% of homes are sold above the list price , which is 16 percentage points higher than the data of the same period last year.

This reminds many people of the collapse of the real estate market 15 years ago, which led to a worldwide economic recession. However, some industry insiders said that the current market is different from 2006, and people should not panic about the real estate market. Because at present, applications for mortgage loans to purchase houses are decreasing, and sellers' asking prices are also beginning to moderate.

In general, every move of the US real estate industry is affecting the sales of surrounding products. The hot sales of houses will drive people's demand, and decorating houses has become their primary goal. Related home furniture products will also receive much attention from American consumers, such as the previously hot-selling fixed chairs, sofas, wardrobes and home furnishing items, which sellers need to pay special attention to.

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