Where is the Real Estate Market Headed ?

First The Headwinds facing the market-

Right now we are living off of stimulus and forbearance.  When this goes away, I suspect we will see a rise in foreclosures, people unable to pay rents, putting pressure on landlords, etc. 

Other than the uncertain political climate, and unknowns surrounding potential, future viruses, this is the only real threat I see, albeit one to take very seriously.

The Tailwinds-

1. The Fed and Congress look incredibly committed to helping stimulate the economy and I am in the camp that believes they have unlimited firepower to support further stimulus.  Now the consequences of using  that firepower long term is another discussion, but I think they are committed in the short term to helping prop up the economy.
2. There is a ton of liquidity out there for two reasons- 1. The Fed just pumped over 3 trillion dollars into the system and 2. All big players were already sitting on significant cash in anticipation of a crash or decline coming due to the market cycle.
3. The Fed can not and will not raise interest rates anytime soon which will keep buyer’s buying power elevated. Should the Fed enter a rate hike cycle, you will probably not be worried about future market decline as it will be due to a rise in rapid inflation. 
4. Specifically for our market we are seeing buyers come from blue states where lockdowns have caused local citizens to flee to areas where restrictions due to coronavirus aren’t as severe. This has been a huge support to our local market.
5. Believe it or not, demand continues to outpace supply. We have not built enough housing units to keep up with the demand for new housing.