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It is an interesting question whether one should sell real estate in a strong seller’s market or to hold in a profitable rental market. The current economic conditions characterized by massive government stimulus, low interest rates, and enormous post-lock down demand have created the highest average house prices in history and ever-increasing rents in many U.S. markets. This month’s inaugural newsletter is published by High Country Property Management, LLC and tackles the pros and cons of selling or holding in this market. The U.S. median sales price for existing single family houses has surpassed pre-pandemic highs and exceeded them by 26%. There are many factors that contribute to this spike. Demand spurred by the lowest interest rate in history and a recovering global economy drives prices up. Furthermore, vaccines and COVID-fatigue are bolstering consumer confidence that the economy is looking optimistic. Also stocks have soared after recovering from the Great Recession and have reached stratospheric levels. Fears that the 12-year streak of a bull market may experience a correction are pushing investors to diversify. The fallout of the COVID-19 pandemic has crippled home builders during the shutdowns and has created supply chain shortages from wood and metal to computer chips and windows. Supply of houses could not keep up with demand even if builders had the desire. To sum it up, the conjunction of historically high demand and equally historic low supply have pushed prices to the highest level since the U.S. Census Bureau started tracking median house prices in 1940. Graph 1: U.S. Median Sales Prices for Existing Houses Source: