Since the COVID-19 pandemic, over 1 million people in Los Angeles Country have filed for unemployment. With the economy taking a hit that will likely require years to recover from, it seems like the natural effect would be that housing prices begin to drop. After all, during the 2008 recession, the median price of a home reached a 30 year low.
But while LA and the country at large have seen a big dip in home sales, the prices have stayed the same. The median listing price of a Los Angeles single-family residence has actually gone up 3% since last month. How could this be?
2008 vs. 2020: Supply and Demand
Housing prices reflect the balance of supply and demand. Just before the economic collapse in 2008, predatory mortgage lending drove up…