An important driver of the surge in home sales over recent months has been households leaving apartments in cities to escape COVID-19 and acquire more space to work from home. But a fall in the share of single-family and completed new homes in total home sales, and a shrinking gap between city and national house prices, imply that source of demand is declining. Alongside record low inventory, that’s another reason to think home sales next year will fall back from their current elevated level.
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