Final answer:
The correct answer is B) Financial means to purchase a home, as the post-pandemic boom in home prices has made it difficult for many first-time buyers to afford homes. Several factors contributing to rising home prices include demographic changes, economic confidence, and banking regulations.
Step-by-step explanation:
The post-pandemic boom in home prices has affected different market participants in various ways. Many first-time buyers have been impacted significantly, finding themselves priced out of the market. The correct answer to the question is B) Financial means to purchase a home. The increase in home prices often outpaces the growth in wages and savings for many individuals, making it challenging to afford the down payment and mortgage for property ownership.
Several factors can lead to rising home prices, such as an increase in the number of people at the most common ages for home-buying, confidence in the economy and job security, or changes in bank regulations that make it cheaper and easier for banks to make home loans. Conversely, economic uncertainty due to threats of war, a higher number of defaults on home loans, or diminished savings in the economy can have the opposite effect. These conditions can influence the affordability of homes and the ability of buyers to enter the market.
Historically, as seen between 1990 and 2006 in the U.S., periods of growing homeownership rates and accessible housing due to various market incentives can lead to more people buying homes. However, such growth can lead to a housing bubble, which, if it bursts, can result in a dramatic shift in the market, as was the case during the global financial crisis. The effects of a pandemic can be similarly disruptive, altering the dynamics of supply, demand, and the overall economic environment that influence home prices.