Housing prices are sky high and still climbing.

[powderman]

   
Housing prices are sky high and still climbing.
« on: Today at 09:53:01 AM »

https://www.foxbusiness.com/economy/housing-prices-sky-high-climbing#&_intcmp=hp1r_34,hp1r

Housing prices are sky-high and keep climbing
National housing shortage showing no signs of easing
By Jonathan Garber FOXBusiness
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Seasonal home prices increase 19% year-over-year
Home prices, already through the roof, are expected to keep climbing.


A national housing shortage is showing no signs of easing and the cycle is not expected to break anytime soon.

"We expect a persistent imbalance between supply and demand in the housing market to generate double-digit home price appreciation this year and next," wrote Ronnie Walker, economist at Goldman Sachs.

The median existing-home price in April was up 19% from last year to $341,600, according to the National Association of Realtors. The price surge came as city dwellers fled to regional hubs and the more socially-distant suburbs after being given the opportunity to work from home indefinitely amid the COVID-19 pandemic.


A national housing shortage is showing no signs of easing and the cycle is not expected to break anytime soon. (iStock)
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The flight to the suburbs pushed total housing inventory down 21% from a year ago to 1.16 million units, according to NAR. Unsold inventory was 2.4 months, holding near a record low.

Existing-home sales account for more than 90% of total home sales.

"Existing homeowners continue to stay in their homes because they have to find something to buy as well, which is very difficult with such a limited supply market," said Odeta Kushi, deputy chief economist at First American Financial Corp.

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Americans looking to build a new home are also confronted with difficulties.

"Build times have elongated a bit with supply chain disruptions and some of the labor availability," said Bill Wheat, chief financial officer at D.R. Horton Inc.

Lumber prices have soared by as much as 316% since the start of 2020 as the pandemic resulted in supply chain bottlenecks and strong demand for building projects, both new construction and home improvements.

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The surge in lumber prices added $36,000 to the cost of building an average-sized home. And that’s if you can find someone to build it. The industry is also dealing with a shortage of workers and, in some areas, a lack of adequate land to build on.

America has been "underbuilding for a decade, and so that points to a continuation of the supply-demand imbalance, which points to further house price appreciation," Kushi said.

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[Doublebass73]

My neighbor just sold his house for insane money. I wouldn't  mind doing the same with my house then downsizing but there's no inventory out there. I'll have to wait until the bubble pops. With pedophile Joe running the show that is probably coming at some point.

[geezerbiker]

I've considered doing the same.  Around here people are moving out to the small towns to get away from the crazy sh** in Portland. 

If I had it in me to do another move Idaho, the Dakotas or maybe Wyoming all sound like good places to settle.  I'm sure any of those places would welcome a displaced conservative.

Tony

[Dee]

My house north of Dallas sold in 48 hours of putting on the market. I don't miss the traffic, the sirens, are people that won't speak, or even look at you.

[DEACONLLB]

I listed a small piece of property and a 25x80 block building on it Building is in very good condition the agent ask what i wanted I said 70,000 she said too cheap I can get you 115.00 with no problem so I hope she is right My grand son and his wife sold their 3 year home for 425.000 sold in one day fellow from Texas bought it never even made a offer just said I will take it. With lumber prices at a all time high you can see what is happening right now it is a sellers market.

Deaconllb

[Dee]

It absolutely is a sellers market. And as for lumber, about 2 months ago I bought 6 8' 1X6s. $11.80 a board.

[Ranger99]

Some of these realtors are selling
by square footage now instead of
by acreage depending on the location

People can't wait to pay asking
plus much extra. There's small
lots with no utilities in areas
that wouldn't qualify for a goat
pasture going for a quarter mil

[Lloyd Smale]

yup im building right now. Price of materials has gone through the roof. Ive had 3 people stop by and ask if im willing to sell as in not completed. One said name a price. Problem is yup i could make some money rather then spend more on materials but then i have to either rent or buy something else and id end up paying high dollar for it. Now if a guy had a second home it would be a great time to dump it. What ill end up getting stuck with is paying higher dollars to build the new on and then prices if and when they come down will make for a loss for me. I guess i wont worry about it because as lone as im alive i have no intention of moving. Same thing with vehicles. It doesnt help me to sell my truck for big money when replacing it cost big money too.

[DDZ]

A home just over the hill from me was selling for 630K. It sits on a fairly steep hillside.  I said they will never get that kind of money for that place. I expected 500K tops. Well it sold in 3 days fr the 630K.  I guess people want to get out of cities and towns they will spend anything to do so. 

[Ranger99]

Just like the primer situation
They're sky high because
people will pay it