Posted on 03/30/2021 6:40:21 AM PDT by blam
WASHINGTON (AP) — U.S. home prices increased at the fastest pace in seven years in January as the pandemic has fueled demand for single-family houses even as the supply for such homes shrinks.
The S&P CoreLogic Case-Shiller 20-city home price index, released Tuesday, rose 11.1% in January from a year earlier. That's the biggest gain since March 2014. Prices rose in all 20 cities, and the 12-month increase was larger for all cities in January than in the previous month.
“January’s data remain consistent with the view that COVID has encouraged potential buyers to move from urban apartments to suburban homes,” said Craig Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P DJI. It's not yet clear whether that trend will fade as the pandemic is brought under control, Lazzara said, or if there will be a permanent shift higher in demand.
The biggest price gain was in Phoenix, where home prices jumped 15.8%, followed by Seattle...
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2004 all over again. I have seen this movie before.
Well, lumber prices are insane, that’s for sure. Boards I paid $8 for one year ago are now $39. A single treated 2x6 is $27.
Houses are expensive. I have 25 acres of woods. I’m considering selling some trees.
The only reason I can think of why real estate in Austin is exploding, other than stupidity, is that it’s being driven by liberals bolting from liberal hell-holes from around the country.
woodbutcher1963 wrote:
“2004 all over again. I have seen this movie before.”
Bubble market, then the bust a few months later?
bookmark
Who is buying all of these houses?
Inflation is getting warmed up for a marathon run....................
Blue state refugees. The housing market in Florida right now is on fire. Spec house next to us sold for 10% over list months before it was completed.
Yep, we’ve got some rental properties there, tempting to look at selling them. DFW market is crazy as well.
The median price of a house sold in February in Orange County, CA was $820,000.
8.2 million people nationwide are behind on their mortgage payments. Biden extended the foreclosure moratorium until 6/30. It will be interesting to see the effect foreclosures will have on the market when that ends.
“2004 all over again. I have seen this movie before.”
Not the same at all. Sure prices are skyrocketing but not all all for the same reasons. Mortgage qualifications were much, much more liberal back in the early 2000’s.
The two drivers of this housing market are ultra low rates and people wanting to escape the urban areas. The previous bubble was caused by massive buyer speculation. Many bought homes in order to flip them and the ease of getting a mortgage made it easy.
“2004 all over again. I have seen this movie before.”
Coincidentally I’m reading “the Greatest Trade Ever” by Gregory Zuckerman. It’s about the 2007 financial crisis and John Paulson’s successful contrarian strategy that made him a lot of money during the crisis. It talks about a lot of the financial people and financial strategies at that time. An information-filled book.
I have properties in DFW and the panhandle of Florida. It’s very stupid right now, looking to dump some properties this summer.
Doesn’t this just mean your money is worth less?
We’re leaving CA next month for central AR.
We got priced out of the market in NW AR, where not once, not twice, not five times, but SEVEN TIMES before we could even go look at a house we were interested in, the property went under contract or had offers on it.
There are so many outbound UHAUL rental trucks one-way from CA that UHAUL had to cancel our reservation — they couldn’t supply a truck in time!
I (mostly) grew up in California. My last immediate family member just left the state last fall. I don’t know if the rate of exit qualifies as an exodus. If not, it’s gotta be close.
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