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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People didn’t spend money in over a year. A lot of discretionary money out there. Down payments can be made by most everyone in the country. We are having bid wars in my neighborhood and houses are not sitting on sale more then four days.
This is also about investors putting their money in physical assets because they don’t trust Jao Bai-Din and his Communist Chinese handlers.
Yep. Lumber is crazy expensive now. $60 for a sheet of plywood.
Lumber futures, if you gaze over at the Wall Street market...highest point in a decade, and probably four times what it was in 2012. It’s five times what it was in 2008.
Something going on...to drive housing prices higher. Lot of construction crews idle....prices reaching a level where the common guy can’t afford a new home.
Now the “Calies” are moving to Oklahoma.
Apartment swellers who don’t want such a packed life, and people realizing just how bad the city c]schools are...they are seeking smaller towns with better schools & more ‘reading-writing—’rithmetic-—and less DIVERSITY components.
NO ONE wants their daughters exposed to males in the bathroom, etc. Small town schools don’t do that.
That and people are staying put and not selling, so there isn’t the normal inventory of available homes.
Believe me, all that stuff is coming to the smaller towns.
i need to cash out and migrate back to the other coast ..
A few key differences from 2004. Credit quality is way higher, down payments are way, way higher and the mortgages are conforming (which had little issues even in 2007-2009) rather than liar loans (NINA loans) and negative amortization loans. Building costs are also way higher, limiting replacement stock, and the government and federal reserve has increased the money supply massively the last year, which encourages inflation.
In my area (SC) there is tremendous new home developing ongoing with most buyers being from the Northeast. In my community homes are selling on the same day they are listed. Much of the buying is cash because the people relocating from the NE are selling their homes and buying homes here for less money.
Add to that the RE taxes which are probably about 15% of what they are in he NE.
There is a third driver - too much currency desperately seeking to be exchanged for value. With government currency creation to the moon and a stock market filled with speculative froth, overpriced real estate is one of the few options left for those who hope to retain assets through the Great Reset.
Inflation is getting warmed up for a marathon run....................
Yes housing prices not only go up because of demand but increasing materials cost push the price up. The government is downplaying inflation on purpose to print more money.
The price for timber has not really increased with the price of lumber. Timber prices are up a little. Lumber has doubled or tripled in price.
Also, with telecommuting, you can live anywhere, so people are flocking to places with relatively low housing costs. Of course that will raise the prices in those areas, as well.
Just wait till after this summer.
The way it looks, another banner year for fires and because of the lack of proper forest management in the past, you’ll see BILLIONS of board feet of timber burned.
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I never read that. I did read “The Big Short”. I also watched the movie. I would recommend both.
White people who dare to believe that their lives and families matter.
Also hundreds of rich coastals who believe they can change the new place into the kind of hell-hole they just fled.
Explain.
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