Home prices rise at fastest pace in more than 6 years

[Yo_Mama_Been_Loggin]

WASHINGTON (AP) — U.S. home prices jumped in November at the fastest pace in more than six years, fueled by demand for more living space as Americans stick closer to home during the pandemic.

Home prices soared 9.1% in November compared with 12 months ago, according to Tuesday’s report on the S&P CoreLogic Case-Shiller 20-city home price index. That is the largest increase since May 2014.

Low borrowing costs are also contributing to rising home sales, which have sharply reduced the number of dwellings available. The limited inventory of homes is pushing up home prices. Sales of existing homes rose in December and home sales for all of 2020 rose to the highest level in 14 years.

Phoenix posted the largest price gain in November from a year earlier for the 18th straight month, with a 13.8% increase. Seattle's 12.7% gain was the second-highest, followed by San Diego at 12.3%.

https://news.yahoo.com/home-prices-rise-fastest-pace-140516425.html

[sfstaxprep]

1. Lowest In History Interest Rates Are A Huge Reason

People overspending on homes, driving the prices sky high. Houses that many can't really afford, but the payments are so low, they figure why not?

[mtnsnake]

4. You nailed it.

Cash buyers looking for a home nowadays have no advantage over the buyers who have hardly a penny in their pockets.

[Ferrets are Cool]

2. I am a RE photographer. It's all I do.

There is very little inventory. My theory is that no home owner wants prospective buyers walking through the homes they are still living in. There are probably more reasons. All I know is that no matter what the cost is, houses are flying off the market.

I was shooting 18-20 houses a week last summer. I am lucky to shoot 8-10 a week now. And I have a LOT of clients.
The agents are hurting.

[MissB]

12. Low inventory describes Portland Oregon right now

And of course the prices are insane.

[BigmanPigman]

3. A local realtor in San Diego said that the increase is too high and not sustainable.

What I want to know who in the Hell has this much money to spend on a new home, especially when unemployment is so high.

[FreeState]

9. San Diego has been crazy

I have a small condo a purchased five years ago. It’s value has risen more than 30% in that time. I could not afford to buy it today.

[Mariana]

10. Most people are still working. nt.

[theneworiginal]

5. They will fall at a pace not seen in many years

once the court allows foreclosures and evictions. That's when the economy will really crash. It is being held together by an artificial real estate market not experiencing normal market conditions. And interest rates won't help anyone without a job.

[montanacowboy]

7. There are a lot of Chinese

purchasing homes and renting them out. They are also buying up a lot of townhouses. The Seattle market is red hot. A decent house rental hovers around 2800 - 3300/month. And then they want first, last and security deposit and if you have pets that is another hefty charge on the monthly bill.

You cannot even find a shack to buy for $500,000. There is nothing out there. I have two friends who are renting from Chinese landlords who do not even live here.

[nolabear]

11. We owned a townhouse in Seattle and sold it a couple of years ago.

We lived in it for about ten years and rented it out for one. We made a KILLING, and actually accepted a little less from a young family rather than selling to a landlord. Just up the hill from Amazon. We traded for twice the space at 3/4 the cost by going north a bit.

It’s nuts, but people are working. Now if we can just get them back out to put that money into the local economy!

[Ferrets are Cool]

14. I also shoot foreclosures. I think a LOT of my business will come from these properties

later this year.

[Marie Marie]

6. I'm seeing houses in the mid-Atlantic area going for $30-50,000 over listing price.

And they are selling in days or weeks.

[JenniferJuniper]

8. Or hours. Minutes maybe.

My SIL is a realtor north of Boston. She says a lot of houses, especially "starters" in good shape, never even hit the market before they are scoffed up. 500k starters.

Part of me wants to sell my house and wait this out, but I've been saying this for a few years now .

[Xolodno]

13. My crystal ball says...

...real estate market correction coming.