Posted on 04/27/2021 12:41:34 PM PDT by thegagline
Cities like Dallas, Texas are benefiting from homebuyers from high-tax states with deep pockets. Real estate executive Rogers Healy weighs in on the 'new reality' of the business.
U.S. home prices in February rose at their fastest pace in 15 years as the COVID-19 pandemic accelerated the urge to move from urban apartments to suburban homes.
Home prices climbed 12% year over year in February, according to the national Case-Shiller index, making for the fastest increase since February 2006. Prices are now 29% above their 2006 peak.
"The housing market is running full steam ahead," said Selma Hepp, deputy chief economist at CoreLogic.
The 20-City Composite rose 11.9% in February versus a year ago, up from 11.1% in the previous month.
All 20 of the index’s cities saw percentage gains over last year, led by Phoenix (+17.4%), San Diego (+17%) and Seattle (+15.4%). The smallest gains were in Chicago (+8.6%) and Las Vegas (+9.1%).
Every region recorded double-digit percentage gains, paced by a 13% increase in the West and a 12.9% rise in the Southwest.
The price increases have been bolstered by continued signs of a strengthening U.S. economy, in addition to low mortgage rates and a shortage of homes available for sale.
However, surging prices won’t last forever, cautions Hepp.
"More for-sale inventories and a narrowing pool of potential buyers will likely slow the speeding train, providing a clearer vision of what’s ahead," she said.
Don’t celebrate skyrocketing home prices. It’s inflation, signaling the demise of the real US economy.
We are headed for a bust that’s going to make the 2008 crash look like a speed bump. Between overvaluation due to no inventory, interest free money being loaned out, and rising inflation something has to give.
Building material cost has already started slowing new construction residential side down in my locality already. Talked to a contractor here last week that said he priced a 2300SF house for someone a month ago and the materials for the same house had increased $25000 over that period.
It will bust. We sold in February for full price and now we are renting. If the market collapses, we are good but I don’t think it will because much of the movement is remote workers or people getting away from unsafe areas.
“My modest little house in CA has been appreciating at a startling rate if one is to judge by Zillow’s notion value. I drive around my neighborhood, however, and nothing’s for sale. Makes no sense.”
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California? Proposition 13 may have a lot to do with that.
There are 114 homes in Tuscaloosa for sale. I think there are 700 real estate agents. Someone told me we could name our price for our place here. We will have 3300 sf after our bedroom addition is finished, another house with 1000 sf, and 36 acres of land, with a big barn and two other buildings. Maybe we can retire!
Ours has seen a big jump. Butt. If we sold it there’s virtually no place in town to buy since they are all $500K+ houses that are really $200k houses. You know what I mean. And they are throwing them up like no tomorrow.
I don’t disagree. I moved to where I’m presently located because you got more bang for your buck. Now taxes are stupid.
Tell them $20 million cash and they can have it!
Well...ok
Asians
Bingo. People all over the world know the Globalists are devaluing all the money they can.
Yep, there’s no other way to get $30 TRILLION of debt under control
And within CA, people are fleeing the cities for the suburbs and rural-ish areas that might have more schools actually open. Placer County (near Sacramento and Lake Tahoe) reopened schools early on (by CA standards) and that county is #1 in growth I think in the state.
Two colleagues listed their house in Downeast Maine. Within 12 hours they had a cash offer at the listing price. The buyer lives in New Mexico and purchased their home sight unseen. Later in the day of that offer, three more offers came in at the listing price.
They tried selling the house several years ago and had no offers.
We need to print more money to pay off this debt. /s
It’s crazy and none of the young people can afford houses because of these California people buying homes way above the asking price many without even seeing the properties. Dumps selling for a million dollars. We need one of our miserable hot Texas summers so they will cool on this insanity.
You can sell for a price over your asking, but where are you going to go? That’s the problem.
Idaho is passing a law OUTLAWING that marxist “Critical Race Theory” from public schools. I think it is on the Governor’s desk today.
I think more people are going to flee the states with the infernal, hate-America, hate-Whitey CRT and move to sane states that don’t teach that crap to our kids.
Remember all the hand-wringing just a few years ago when debt was hitting 100% of GDP? It was catastrophe, the end of the world.
The numbers you provided are really scary. Who will buy that debt? What happens when interest rates notch up a small fraction of a percent? What happens to the dollar?
Another FReeper I was chatting with a few days ago is shorting the US Dollar.
Great idea :-)I think I could manage to get by on that.
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