Posted on 04/25/2023 8:02:35 AM PDT by ChicagoConservative27
Nationwide home prices increased in February after falling for seven consecutive months, according to data released on Tuesday.
New S&P CoreLogic Case-Shiller U.S. National Home Price Index data showed that prices rose from the previous month by 0.2 percent after seasonal adjustment. Prices were up by 2 percent year-over-year.
The 20-City Composite index, which measures price growth in major U.S. metro areas, showed a 0.4 percent year-over-year gain. Miami, Tampa, and Atlanta posted the highest annual increases.
The bump in home prices reflects a return to normal for the spring buying season, Zillow senior economist Nicole Bachaud said in a statement.
(Excerpt) Read more at thehill.com ...
Demand seems to be holding up in desirable locales.
However, with mortgage rates up the powerful surge in home prices has abated for now.
My ongoing question is, how can home prices be so far in excess of incomes of people who would buy those houses?
Related to that, who is buying these houses at inflated prices? There’s anecdotal evidence that many homes are being bought by investors, as opposed to being bought by families who will live in the house.
But then, if there is a market correction, won’t these investors lose their shirts; isn’t investing in these houses somewhat a risky investment in that regard?
The house behind me is around 1800 sq ft. Last time I checked the asking price was 460k........it’s not moving.
A year ago it woulda had multiple offers over asking price and ben sold in days.
“There’s anecdotal evidence that many homes are being bought by investors, as opposed to being bought by families who will live in the house.”
Private buyers dominate here.
Where is “here”?
Probably because of Biden's skyrocketing mortgage rates
Time for all the left-wing outfits to prop up the pooper, by putting lipstick on a pig.
West coast Florida
Those cash buyers are hedge funds, sovereign wealth funds, foreigners, wealthy, private investors, etc.
Asset inflation via helicopter money from .gov helps the wealthy get wealthier, inflation is a middle class and poor problem.
You can say that again. My home value has quintupled. Hard to grasp.
MBSs waiting for the next government guaranteed backstop.
And that is the real problem.
Home prices rise for the first time in months.
In other markets it’s called inflation.
From someone who is involved in Florida home construction. We have entire subdivisions being built by investors exclusively to rent out. Investors all over the world realize that real estate is and always has been the best long term.
As to affordability, one major factor is appreciation. People buying 500k to 1000k homes often have half or more of that in cash from appreciation of their prior homes. Notice 2 of the biggest 3 gainers in the index were florida cities.
I saw an article this morning about how Zillow has revised their projections based on their analysis which finds the housing market to be highly divided between regions right now. They said the entire Southeast is a hot market with annual appreciations in the 4% range being pretty common. Florida has one of the hottest markets in the Southeast according to their map. I can attest to this as I’ve got two family members who made some serious bucks selling houses down there recently. One in particular netted about $100K after owning the place for just four or five years.
My impression is that it’s people flooding into the Southeast to escape blue state Clown World that’s driving the market.
The other major demographic trend is that the baby boomers are retiring or within 7 years of retirement age of 67(me).
I am on my third house. I bought the first in 1990. I do not have a mortgage. My next home will be a downsize from my current property. The boomers in general move south.
However, I would buy a house in ITALY before I would move to Florida, AZ or other warmer places in the USA.
Check out Reventure Consulting on YouTube.
I subscribed to this guys channel about a year ago. He makes predicts based on the average income in the metro areas.
Generally, he has been fairly accurate. Although, he predicted much larger declines in some of the very expensive markets like Tampa, Jacksonville and Miami. Keep in mind, opinions are like a$$holes. Everyone has got one.
Well that’s a good point. I can see boomer retirement being a factor.
The Atlanta market has never slowed down. Low inventory and large numbers of people relocating here. We have been slow to finish rehabbing our house so we can sell it but houses in our neighborhood are still selling in a week or two and prices have not dropped.
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