After almost two years of increasing demand, housing starts are poised to decline in coming months. This is among factoids divulged in newly released housing industry data, including LegalShield Economic Stress Index and Magnetic Collective/Century 21 findings regarding the pandemic’s effects on the real estate market.

The dichotomy of elevated demand and moribund sales is expected to continue in coming months, data indicates. Late last year, the LegalShield Housing Sales Index dropped to its lowest mark since the summer of 2020, reflecting low inventories and high prices. The combination of elevated prices, low inventories and rising mortgage rates should reduce housing sales. That said, though, sustained demand — especially among the Millennial cohort — should keep them above historical benchmarks.

The LegalShield Housing Construction Index reports housing starts grew 12% in October, staying 8% higher vis-à-vis the same time in 2020. Despite builders battling steep material costs, skilled labor shortages and supply chain woes, construction activity continues healthy, and will likely remain so for the foreseeable future.

Original article: https://www.forbes.com/sites/jeffsteele/2022/02/23/latest-stats-rewrite-conventional-wisdom-on-covid-housing-impact/?sh=4a9f4c8265cf

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