Home prices surge by most since 2006

Fox Business News ^ | 04/27/2021 | Jonathan Garber

[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.

[thegagline]

In 2016 I purchased a home in Austin for just under 700k. Comparable homes in my neighborhood, Travis Heights, are selling for over $1,400,000. The market is on fire here and in neighboring New Braunfels, Fredericksburg, and Georgetown.

[libh8er]

It’s all California money causing inflation elsewhere. Somebody must be buying their homes back in California. Who would buy for such high prices when everybody is leaving ?

[2aProtectsTheRest]

I’ve also been watching the homes near mine selling for extraordinarily high numbers. I don’t see how this can possibly be sustainable, particularly with all the economic damage that’s been done. I’ve been predicting a wave of foreclosures crashing the market for quite a while, but so far there hasn’t been any sign of slowing. It’s been nuts.

[alternatives?]

Think of the impact on property taxes.

[airplaneguy]

Foreign buyers. Where do you think trillions of RMB are going?

[DIRTYSECRET]

I hope to sell mine-overpriced. Nibbles only. If i get lucky I’ll jump on one of those foreclosures.

[stanne]

Are these people kidding?

Home prices where? In calif?
All over

They lost congressional seats in blue states and FOX wants Us to Pretend there’s a Biden economic surge

I can’t even go to dinner here in Texas. Can’t go out on a Saturday

This place is packed

My house value has doubled. It went up 12 % last year alone

These people are disgusting propagandists

People are running from blues states

Home prices are not soaring.

There is a mass exodus.

Hello!!!

[2aProtectsTheRest]

I’ve considered putting mine up for some absurd number (e.g. 40% over current market value) just to see what happens.

[Richard Axtell]

2008 Redux? Great.

[glorgau]

I’m starting to see the absolute frenzy receding. Still an absolute sellers market, but many sellers knowing that this may be their best shot at getting top dollar are putting their properties out there.

[alternatives?]

I wish my home was worth $5. Insurance would be much lower. It is likely not going to be sold until I die and if I could replace it for $5 what difference would it make? I don’t need, or want two.

Nobody brags about their socks being worth $100,000. It is far better them being worth $1.

[Dilbert San Diego]

The prices of even modest 3 bedroom homes are stunning.

I don’t see how middle class people can afford these houses. When you do the mortgage calculations using traditional criteria, such as, you can afford a house costing 2 1/2 times your income, and support a mortgage of twice your income, very few middle income people have comfortable six figure incomes needed to qualify for the mortgage.

I know the “gift letter” is part of many mortgage applications nowadays, a gift from parents or other relatives to help the buyers make the down payment.

I’m out of the loop, and haven’t had to get a mortgage in decades, thank God, so I’m not sure what types of “creative” financing may be out there, to support the current prices.

[David Chase]

What goes up, must come down.

Don’t mean to be a Debbie Downer..,.....

[DallasGal]

I’m shocked at what homes in my neighborhood are going for. What hurts is the property taxes. I have a very modest 3 bedroom home and stupid prop taxes.

[dfwgator]

"Kid, you're on a roll. Enjoy it while it lasts, 'cause it never does."

[GOPJ]

Same in Florida... home prices are nuts.

[tbw2]

We’re not benefiting, because this is a property tax dependent state. That 12% price increase in one year leads to a roughly 12% increase in my property tax bill.

[Osage Orange]

I wear $2 socks....FWIW

[Justa]

20% per year is nothing. My coffee creamer went up 50% in a year!

[JoSixChip]

We put our house in northern Colorado on the market in early April. Two days later we had 8 offers with 3 of them being $70k over asking and closing within 4 weeks. Oh, and they waved appraisal and limited inspections to safety and structural only.