Home prices in March saw highest growth in over 15 years, S&P Case-Shiller says

[mahatmakanejeeves]

Source: CNBC

REAL ESTATE

Home prices in March saw highest growth in over 15 years, S&P Case-Shiller says

PUBLISHED TUE, MAY 25 2021 9:01 AM EDT UPDATED AN HOUR AGO

Diana Olick
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KEY POINTS
-- Home prices in March were 13.2% higher in March, compared with March 2020, according to the S&P CoreLogic Case-Shiller National Home Price Index.
-- The 10-city composite rose 12.8% year over year, up from 11.7% in the previous month. The 20-city composite increased 13.3%, up from 12.0% in February.

Home prices in March were 13.2% higher in March, compared with March 2020, according to the S&P CoreLogic Case-Shiller National Home Price Index. ... That’s up from the 12% annual gain in February, and it marks the 10th straight month of accelerating home prices.

The March gain is the largest since December 2005 and is one of the largest in the index’s 30-year history. Prices are being pushed higher by incredibly strong competition in the market. High demand is butting up against near record-low supply, resulting in bidding wars for the vast majority of listings.

The 10-city composite rose 12.8% year over year, up from 11.7% in the previous month. The 20-city composite increased 13.3%, up from 12% in February.

Cities with the strongest price gains continue to be Phoenix, San Diego and Seattle. Phoenix sits at the top with 20% year-over-year price increase, followed by San Diego with a 19.1% increase and Seattle prices rising 18.3%. All 20 cities reported higher price increases in the year ending March 2021 versus the year ending February 2021.

{snip}

Read more: https://www.cnbc.com/2021/05/25/home-prices-in-march-saw-highest-growth-in-over-15-years-sp-case-shiller.html

[Bengus81]

1. Yeah...and the Property taxes are going up year on year big time here in Kansas

Especially in Wichita where property taxes are high anyway compared to many cities. When all this dies down in a year or so from pent up demand because of Covid,the home values will drop but the property tax increases won't follow them back down.

[OneCrazyDiamond]

2. Can't be.

President Biden was supposed to crash the economy.

[Calista241]

3. This is not really a good thing.

I mean, it's good for people who are selling their house, but it's bad for almost everyone else. There's not enough housing supply on the market, and housing starts are way down, due to a shortage of building materials. Everyone thinks interest rates will go up modestly later this year, but for a population that's used to 3.5 - 4.5% rates, anything over 6% is going to be a problem, and that's going to severely affect housing.

[OneCrazyDiamond]

4. The Presidents election still didn't crash the economy. N/T

[BobTheSubgenius]

6. The shortage of materials is making the prices of them go CRAZY!

1000 square feet of framing lumber (I didn't even know it was sold that way) is now around $1500 Cdn. The framing package for a 2000 square foot house is right around $200,000.

I was offered $650,000 for the lot my house is built on, and the framing and foundation are nowhere near the total cost of building. So, you're at $850,000 before you put on siding and start finishing the interior.

How can people be managing this??? There are two new 2400 square foot houses across the street from me....not finished yet, but projected to go for $1.6 million each.

My sil is building 3 projects in Alabama right now. Could NOT refuse the money he was offered, so southward he went. They are falling behind because they can't get heavy equipment operators for love or money. He phone back home to WNY to talk to some that he knows there, offering them air fare, hotel and $100 an hour. No takers. ZERO!!!!

[MontanaMama]

5. I don't think this is great news for anyone except

those selling their homes. In my corner of the country, housing is in extreme short supply and prices have soared the last few years and wages have not kept up. The median home price is $440K which is not affordable for so many people. $250K buys nothing but a crappy drive-by fixer upper. I personally know two people who got more than $100K than their asking price which basically means that every home has a list price where the bidding starts. I recently hired a landscaper to re-work my garden area and he told me that he had just made an offer on a 3 bedroom 1 bath home built in the 50's...he offered $20K more than the asking price of $330K and the home ultimately sold for $435K...his offer was one of 23 offers on the home. It's ridiculous.

[BobTheSubgenius]

7. I'm not sure it's great news for even them, except in a limited number of cases.

People have to live somewhere, and, unless you move away or seriously downsize, you're putting all that money, plus fees and costs, into your new (to you) home. The most recent numbers I saw from the Real Estate Board said that the average selling price here is $1.2 million this spring. I don't really want to move from this town, because I just love it here, and I hate strata councils with a passion, so...here I sit.

[mahatmakanejeeves]

9. As housing costs skyrocket, Bozeman's workers and employers feel the pinch

Bozeman Daily Chronicle Retweeted

Bozeman's housing crisis is now being felt in area restaurants, hospitals and grocery stores #mtnews

Link to tweet

[Marrah_Goodman]

8. Prices are already too high

A huge chuck of Americans will never be able to own their own home.

[TheFarseer]

10. Remember

This was a good thing when Trump was president, but now with Biden as president, it's a bad thing. This is what the right is pushing anyway.

[Yavin4]

11. The U.S. housing crisis is the result of zoning for detached single family homes.

The Missing Middle problem:

Missing middle housing describes a range of multi-family or clustered housing types that are compatible in scale with single-family or transitional neighborhoods. Missing middle housing is intended to meet the demand for walkable neighborhoods, respond to changing demographics, and provide housing at different price points.[1] The term "missing middle" is meant to describe housing types that were common in the pre-WWII United States such as duplexes, rowhomes, and courtyard apartments but are now less common and, therefore, "missing".

https://en.wikipedia.org/wiki/Missing_middle_housing

[Vinca]

12. It's been off the wall in southern Vermont and New Hampshire. If you're not a cash

buyer with LOTS of extra cash on hand for additional offers, you're out of luck. People should be more careful, though. What goes up also goes down. After a similar thing in 2007-2008 many buyers who later sold their houses took a real beating. Great time to sell, lousy time to buy.