New real estate data shows that despite the pandemic, real estate prices are experiencing growth not seen since the bubble years of the mid-2000s. After a slow spring, the quest for more personal space during the pandemic has led to single-family home prices climbing more than 14%, according to data compiled by The Warren Group’s August Sales Report.But the communities with the biggest gains are not the usual suspects. For example, Littleton is the Boston suburb with the biggest price increase in August, despite a location that would make a commute into the city more difficult than other suburbs. Home prices there are up 29% compared to a year ago. “People are reacting to wanting less dense places, perhaps to retreat to in times of high infections,” said Timothy Warren, CEO of The Warren Group.According to the sales report, the median price for a single-family home jumped to a record … Read More
Home sales surged to a 14-year high in August as record low interest rates brought homebuyers out in droves and pushed prices to a new record high.
Existing home sales — which includes sales of single-family homes, townhomes, condominiums and co-ops — were up 2.4% in August from July, to a seasonally-adjusted annual rate of 6 million transactions, according to the National Association of Realtors. That was a 10.5% increase from the year before and the highest level since December 2006.
WASHINGTON (Reuters) – U.S. home sales surged to their highest level in nearly 14 years in August as the housing market continued to outperform the overall economy, but record high home prices could squeeze first-time buyers out of the market.
The report from the National Association of Realtors confirmed home sales had recovered after slumping when the economy almost ground to a halt as businesses were shuttered in mid-March in an effort to slow the spread of COVID-19.
Demand for housing is being fueled by record-low mortgage rates and a pandemic-fueled migration to suburbs and low-density areas in search of more spacious accommodation as many people work from home. Federal Reserve Chair Jerome Powell told a congressional panel on Tuesday that the economy has shown “marked improvement” since plunging into
Home Prices Skyrocketing Because Of Low Mortgage Rates, Not Because COVID-19 Increased Demand For Large Homes
Home prices are skyrocketing in most U.S. markets despite COVID- 19, a recession and a shockingly high unemployment rate.
Many analysts are speculating that part of the boom in house prices is caused by COVID-19 – that some people are concerned about COVID-19 contagion and don’t want to live any more in tight, multi-family buildings so they’re buying single-family homes in the suburbs. Another theory along the same lines is that because working from home has skyrocketed, some people want more space so they’re buying larger single-family homes, especially if their kids are home all day, too. This seems to be happening in metro New York City but what about places that weren’t hit as hard by COVID-19 and aren’t as dense as New York City?
Certainly the lower mortgage interest rates are a huge part of the current home price
The cost of lumber has more than tripled in the past five months, adding to the cost of new homes and do-it-yourself projects.
As of Monday, lumber prices had risen 170% since the middle of April, said Steve Martinez, owner of Tradewinds General Contracting in Boise.
“That equates to a $16,000 increase in the cost of an average new home,” Martinez said by phone.
Demand was high before the coronavirus pandemic struck in mid-March, when one-fourth to one-third of Northwest mills shuts down for several weeks, cutting the supply, Martinez said. He serves on the finance committee of the National Association of Homebuilders and is former president of the Building Contractors Association of Southwestern Idaho .
The closures came amid moves to obey pandemic health regulations and because of an anticipated drop in demand, the National Association of Homebuilders said.
Boise Cascade Co, a wood-products manufacturer based in
- A recent report by Redfin that analyzed the 4-week period ending September 6 found that the median price of a home in the US saw its largest percentage increase since 2013.
- Rising prices and low inventory have created highly competitive markets for homebuyers, especially first-time homebuyers.
- This increase is the latest in a string of record highs for median house prices since the summer, meaning buying a house may not be a great deal for everyone right now.
- Visit Business Insider’s homepage for more stories.
The typical US house price jumped 13% year-over-year to $319,178 for the four-week period ending September 6, per Redfin. That was the biggest percent jump in seven years, since 2013.
The report, which looked at 434 metro areas, also revealed that active listings were down 28% from the same time last year, meaning tight supply keeps propping prices higher and higher. With rising prices, low
People moving in from expensive cities and locals with changing needs are contributing to rising home prices and fast sales even as tourism industry takes the brunt of the pandemic’s economic impact
SEATTLE, Sept. 16, 2020 /PRNewswire/ — (NASDAQ: RDFN) — The typical home-sale price in the Las Vegas metro grew 7.8% year over year to $310,000 in August, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. More than 41% of homes sold within two weeks of going on the market, up from 28.3% last year.
Meanwhile, the unemployment rate in the Las Vegas area—where much of the economy depends on the tourism industry, heavily impacted by the coronavirus pandemic—stood at 16.4% in July (the most recent data available). That’s an improvement from 30% in April, but higher than the 10.2% national rate posted in July.
Oppenheimer: 3 Stocks That Could Surge Over 100% From Current Levels
So far, September has been a wild ride of ups and downs. Following the recent bout of volatility, stocks have ticked higher again. But as uncertainty regarding another rescue program and the presidential election continues to linger, where does the market go from here? Weighing in for Oppenheimer, Chief Investment Strategist John Stoltzfus argues that any market dips appear “relatively contained and orderly,” and present longer-term investors the chance to find “babies that got thrown out with the bathwater.” He noted, “For nervous investors the recent downdraft has presented opportunity to take some profits without FOMO (fear of missing out).”As for the tech heavyweights that powered the market’s five-month charge forward, the strategist believes “current expectations that technology stocks will remain under pressure for some time seem exaggerated.” Stoltzfus adds that the “core of technology stocks did not
BEIJING (Reuters) – New home prices in China rose at a slightly faster monthly pace in August, as consumer demand showed signs of picking up in a boost to an economy recovering from the coronavirus crisis.
Average new home prices in 70 major cities climbed 0.6% in August from a month earlier, a touch better than a 0.5% increase in July, according to Reuters calculations based on data released by the National Bureau of Statistics on Monday.
On an annual basis, home prices rose 4.8% in August, matching July’s pace.
The property market has been a major driver in China’s economic recovery, with home sales and investment growing at a robust pace in recent months after coronavirus lockdowns were lifted.
Yet policymakers remain wary about the risks of overheating, long one of the key balancing
(Adds Country Garden comment)
HONG KONG, Sept 10 (Reuters) – Country Garden, China’s top property developer, and smaller real estate firms are weighing bigger discounts on homes after Evergrande announced its steepest ever discount, analysts and a source said.
Evergrande, China’s second biggest property developer, announced a nationwide 30% discount on all of its properties until the end of the week-long holidays in early October, traditionally China’s peak home buying season.
The move is aimed at boosting sales and cash flow at China’s most indebted developer at a time when profits have weakened.
Steeper discounts from developers come against the backdrop of a sluggish recovery in home prices in smaller cities and ebbing appetite for property market speculation outside major cities due to uncertain economic conditions.
A Country Garden source said the company is planning to launch a campaign in response to Evergrande’s price cut, but the rate of discount