Home prices rose 18.8% in 2021 - the biggest
increase in 34 years - with Phoenix and
Tampa seeing the biggest jumps as COVID
drove migration away from the Northeast
Daily Mail (UK),
by
Keith Griffith
Original Article
Posted By: Ribicon,
2/22/2022 7:42:34 PM
US home prices saw their biggest increase in at least 34 years in 2021, according to data released Tuesday, as buyers spent the year snapping up homes and builders struggled to keep up. Home prices surged 18.8 percent last year, according to the S&P CoreLogic Case-Shiller US National Home Price index, the biggest jump since its creation and much more than the 10.4 percent jump seen in 2020.
Fueled by remote work and booming regional economies, mass migration to the South, Southwest and Mountain West drove some of the sharpest increases in home prices, as demand outstripped supply. The biggest increase in home prices took place in Phoenix,
Reply 1 - Posted by:
Stencil 2/22/2022 8:27:53 PM (No. 1079897)
Bad things happen when you redline (as in tachometer) a system for too long. I'm expecting a snap back in the elastic band . . .
7 people like this.
Reply 2 - Posted by:
GoodDeal 2/22/2022 10:13:51 PM (No. 1079952)
I’ma Ca Realtor. My friend just sold a home His moon and dad owned in Ontario. Built in 1949. Old and not much too it. Market research had its value right about $550,000 maybe up to $600K.
Last week he had 6 offers all from Chinese buyers.
He sold it to a Chinese investor for $750,000. 30 day escrow. The Chinese are out on a buying spree getting their money out of their country and into US real estate.
15 people like this.
Reply 3 - Posted by:
formerNYer 2/22/2022 11:55:18 PM (No. 1079997)
Yeah Covid drove people from the NE, not the increase of crime, filth and homeless because of liberal policies.
Daily Mail still carrying the leftist water.
10 people like this.
Reply 4 - Posted by:
kono 2/23/2022 1:56:49 AM (No. 1080029)
Just the population of yankees shifting, to turn two important red states blue. Feh.
7 people like this.
Reply 5 - Posted by:
mifla 2/23/2022 2:46:55 AM (No. 1080040)
Covid didn't drive them out, high taxes and crime did.
21 people like this.
Reply 6 - Posted by:
stablemoney 2/23/2022 3:06:22 AM (No. 1080050)
The houses are not paid for. Just mortgages for inflated prices. I wonder what will happen to those mortgages once the bubble bursts.
11 people like this.
Reply 7 - Posted by:
Dodge Boy 2/23/2022 7:01:50 AM (No. 1080130)
The real estate bubble will pop...soon. No longer a question of could it pop soon. All eyes on the Federal Reserve. The interest rate increases are a coming and the real estate market will start to circle the drain.
8 people like this.
Reply 8 - Posted by:
NancyD 2/23/2022 7:06:53 AM (No. 1080137)
#2, is this why we are seeing "all cash offers and paying well above asking prices"?
Our nephew is trying to buy a house now and has missed out on all of them. He can't pay cash and refuses to pay more than whats its worth.
5 people like this.
Reply 9 - Posted by:
cThree 2/23/2022 7:49:30 AM (No. 1080174)
With all due respect, a house is "worth" what people will pay for it. This was also true back when people would complain that they couldn't sell their house "for what it was worth."
Another way to look at it is, consider the "worth" of the house fixed, and the value of the dollar diminished. The dollar has gone down in value, reflected in how many now it takes to buy that house. It's a measure of inflation.
8 people like this.
Reply 10 - Posted by:
franq 2/23/2022 9:15:54 AM (No. 1080259)
More like your purchasing power has declined almost 20%. But I thought inflation was only 7.5%. 😳
5 people like this.
Reply 11 - Posted by:
NorthernDog 2/23/2022 9:28:57 AM (No. 1080270)
Investors seem to be buying up any lower priced, fixer-upper homes in our area. The house will sell almost immediately. Then are repainted with the same gray & white color schemes. The interiors are then redone with very similar colors and materials. Add a few new shrubs and bushes and they are re-listed for sale for $125,000 more than they sold for just a few months earlier. So far, all have resold at the (crazy) higher price.
2 people like this.
Reply 12 - Posted by:
harleynyc 2/23/2022 10:03:02 AM (No. 1080312)
Chinese buyers are a in never ending supply here in Brooklyn. I hear the chicom banks give them 150 year mortgages. How else could a young couple afford to buy million dollar+ one fam houses ?
2 people like this.
Reply 13 - Posted by:
NancyD 2/23/2022 10:29:49 AM (No. 1080349)
That "Worth whatever someone is willing to spend" isn't necessary true. IF I were to sell my car for !00K, and the exact car is for sale for $30K, it doesn't mean my 100K car is "worth" that amount, it means that someone is an idiot for buying it.
This is exactly what happened when the housing bubble popped a few decades ago. People owed more on their homes than their worth. Foreclosures abound and many banks failed. That was all due to Clintons forcing the banks to lend regardless of income level.
4 people like this.
Reply 14 - Posted by:
Talk2 2/23/2022 10:36:40 AM (No. 1080370)
Keith, to put it kindly, you don't know what you are writing about. COVID drove them away-ROLMAO at the stupidity of that sentiment. What drove them away has been well stated above by those who see through you like a glass door.
2 people like this.
Reply 15 - Posted by:
Zigrid 2/23/2022 10:49:37 AM (No. 1080392)
I have owned 7 homes in all my years...even one in Ontario...and I've always made a profit because I watched the market...I recall the upset years ago when Japan was buying property to hedge their bet than Japan was heading into a recession...and then the movement into Hong Kong when the agreement was reached with England...if you play in the property market...you must watch all the driving forces...the fact that the Chinese are buying property in the U S indicates to me...what I've suspected for a long time...china is in trouble financially...and the olypics brought it home...if the ski jumps in a nuclear refuge area with discarded cooling towers and rusty towers was the best china could offer...then a picture speaks a thousand words...
2 people like this.
Reply 16 - Posted by:
LC Chihuahua 2/23/2022 11:53:41 AM (No. 1080465)
I have to start looking at selling my house back in New York now that I am a resident of Florida. Property taxes are higher for non-residents. Making a trip (by car) back to New York this spring to get all my 'must haves' out of the house. Can't be alot since my space is limited in Florida. I will be getting rid of most. Always knew I would be downsizing sometime in my life. Never thought it would happen now.
Ah, the turmoil of COVID.
2 people like this.
Reply 17 - Posted by:
WI Cynic 2/23/2022 1:27:35 PM (No. 1080557)
I do property tax assessing, so see all the sales in the areas for which I work. The house-buying frenzy started quite a while before covid showed up. It started about the time the cities started burning.
The increase in house prices wasn't any 18%, either. I'm in a place that has comparatively modest house values, and it's common to see sale prices double the market value of three years ago.
A lot of these sales have no financing involved.
2 people like this.
Reply 18 - Posted by:
KatieJo 2/23/2022 1:38:37 PM (No. 1080565)
We are selling my parents home in a little town (population 250) in Iowa that is less than 10 miles from a larger town/small city. It is a two story (full basement too), 4 bedroom with a two car garage (not attached). It was built in the early 1900's and has some very charming features, solid wood pillars, pocket doors, beautiful woodwork and a front porch that runs the length of the house--also with pillars.
I live in MN, but am from Iowa and am aware of the differences in housing prices (MN has been Californicated) but I am still shocked. For instance, we have a small one-story home, very nice location though--wooded area near water--but the place was a dump when we bought it for $65k 20 years ago and now it's valued at nearly $250k. My parents house has been valued at $72k and I just don't get it.
I thought that with the exodus from the cities and blue states and the small town location in a red state, the value would have increased significantly. The house doesn't have any issues really, a bathroom needs to be updated, but it's structurally sound and IMHO--very charming. Any of you real estate buffs have any advice? We don't really want to hire a realtor and I can't find many FSBO websites that do not charge a fee. Sorry to use the forum for advice, but thanks!
1 person likes this.
Reply 19 - Posted by:
GoodDeal 2/23/2022 1:54:54 PM (No. 1080572)
#8 i feel the pain for sure. I just sold a house two months ago to investors. Full price 30 day escrow all cash. Many homes now get multiple offers for more than asking. If they want it they have to offer their highest and best offer even if it’s above asking. Interest rates are now in the 4% range for a30 yr Fixed mortgage. Going up too. They have to pull the trigger now or lose the opportunity. Remember the market value of what it’s worth is what someone is willing to pay on any given day.
There is no housing bubble in the future. Inventories are still at historic low levels. Demand is high. It’sa sellers market. If your friends want it they have to bite the bullet and pay whatever it takes that they can realistically afford and buy it. Their agent needs to look every day for new listings and be aggressive and remember that in 30 days it will probably be sold. Jump on it!!! He who hesitates is lost. Good luck!!!
1 person likes this.
Reply 20 - Posted by:
Faithfully 2/23/2022 7:09:15 PM (No. 1080777)
Tulips. Wait for it.
0 people like this.
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Refugees from the Northeast are bad news wherever you are; as a rule, their attitudes and voting patterns come along for the ride. Also, the young people who voted for Bidet should relish using public TRANSportation and maybe one day making a down payment on an uninsulated shed with a 50-year mortgage, with rents also skyrocketing. Keep increasing the population too, maybe have another housing market collapse, seeing how well the banks made out on the one Dubya caused.