Posted on 11/30/2021 12:33:20 PM PST by Oldeconomybuyer
WASHINGTON -- U.S. home prices rose briskly in September, another sign that the housing market is booming in the aftermath of last year's coronavirus recession.
The S&P CoreLogic Case-Shiller 20-city home price climbed 19.1% in September from a year earlier. The strong price gains marked a deceleration from August's 19.6% year-over-year increase. Still, September prices in all 20 cities set new records.
Phoenix was the nation's hottest market, registering a 33.1% price increase. It was followed by Tampa (where prices rose 27.7%) and Miami (25.2%). All 20 cities reported double-digit increases. The smallest gains were in Chicago (up 11.8%) and Minneapolis (12.8%).
The housing market has been strong, thanks to rock-bottom mortgage rates, a limited supply of homes on the market and pent-up demand from consumers locked in last year by the pandemic.
Last week, the National Association of Realtors reported that sales of previously occupied homes rose 0.8% last month to a seasonally adjusted annual rate of 6.3 million, strongest annual pace since January. The Commerce Department reported last week that new-home prices edged up a disappointing 0.4% last month as median prices rose nearly 18% from a year earlier to a record $407,700.
(Excerpt) Read more at abcnews.go.com ...
Which tells us something about the real inflation rate.
Good, that will offset the stock market losses due to Biden.
Should collapse now that Zillow auto-offers have died out.
I’m probably out of touch here, but this house price stuff is nuts.
I have acreage, two houses, and a shop in Hawaii.
I’m debt free.
but house prices are NUTS!
My place is not worth that much. It is a home, a place to live, raise food, and that is it.
Kids these days can’t possibly buy what was very common to do when I was younger. Own your own home.
I know exactly what it cost to build my Daughters house.
Materials.
This whole housing thing is a “bubble” created by Government to perpetuate Government.
Do not comply.
Your property is worth whatever willing buyers and seller negotiate, based on whatever market conditions are there.
I don’t understand why government would want to perpetuate a housing bubble, in which the middle class gets priced out, but I do fear repercussions if it collapses.
What island is the shop on?
Ok, so at least in my area home prices are far outstripping what the average person in this area can afford. Therefore the prices will drop because nobody can buy at unrealistic prices.
However a realtor said that companies from Australia, Asia Europe, and South and North America are coming in and buying entire newly-built neighborhoods with money the central bank throws at them. They ask the realtor to help buy the houses and say they want to make them rental properties.
“No you don’t” says the realtor.
“Yes we do” the companies say.
“No you don’t, your neighborhood will be a ghetto in 10 years, and in 20-30 years you will be tearing it down.”
“Oh no, we have done this in Brisbane, Copenhagen, Amsterdam, Davenport, Singapore...” so on and so forth. “We have property managers.”
“Ok” says the realtor, “but don’t come back to me when you lose your shirt on a bad investment.”
The management never bothered to look at Google maps satellite view to see all the neighborhoods in St. Louis, Birmingham, Jackson, Memphis, Montgomery, etc. You can see how many ‘hoods are nothing but empty lots with perhaps one or two abandoned homes still left. And they go on for miles.
Yes, ill-advised but that's the reality (automobiles are sold the same way).
With mortgage rates being historically low, people have been able to pay more money for homes than they normally would.
If the mortgage rates rise, the home prices will need to fall correspondingly. Otherwise, many will be priced out of the market.
Zillow today is showing a small drop in overall real estate prices.
Definitely starting calming down in AZ.
A good thing
Most of the idiots who bought homes in this market chose adjustable rate loans for utterly pathetic reasons when a fixed rate long term loan is the best deal when retail rates are less than 2%.
When rates eventually rise it’s the damned fools who took out adjustable paper who will be getting themselves foreclosed on and I will not give a single damn when that happens.
“Most of the idiots who bought homes in this market chose adjustable rate loans for utterly pathetic reasons when a fixed rate long term loan is the best deal when retail rates are less than 2%.”
Where is your source for the number of idiots?
30-year fixed rate is NOT less than 2%.
It was when my daughter closed earlier this year.
I have a adjustable rate. I have had it for 17 years. It has not gone above 3.25%. I see no reason to lock it in when the federal debt is what it is.
1% on 30 trillion is 300 billion. 5% is 1.5 trillion dollars. If they raise the rates the federal government can’t afford it.
5% on my mortgage raises my payment just $270 a month. I make that in less than three hours. So no big deal.
Probably just pay it off. Haven’t yet because it will drop my credit score. Need some other accounts to get some age to them. My score it pretty high but will drop if I pay that account off.
“It was when my daughter closed earlier this year.”
Not unless she paid a LOT of points!
Construction fell off sharply in 2020 (as everything else did) and there will be fewer homes than can fill demand for at least another year -- give or take millions of illegals being brought in by the Biden regime.
“30-year fixed rate is NOT less than 2%.”
In California today a 30yfr goes as low as 2.125%
Close enough for me.
At these rates - factoring in inflation - you are being paid by the banks to borrow the Fed's worthless currency. Play the game the way they want - and you can get rich using the system they set up to make their cronies into trillionaires.
Hey, I’m a trillionaire and I have the $100 trillion bill from Zimbabwe to prove it!
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