The Communist Party of China (CPC) virus (Wuhan Pneumonia) epidemic has been raging so far. Although it has hit us business activities hard, it has unexpectedly ignited the housing market and become a bright spot for the US economy. Housing prices rose in most parts of the country during the epidemic, and are expected to stay that way through 2021, according to economists. However, the epidemic has also reversed the past “easy to rise difficult to fall” conventional advantage of the region.
Prices in the big coastal cities have historically risen the most, largely because of weak supply and strong demand. But things have changed.
Homes are selling for at least 10% more in Pittsburgh, Cleveland, Cincinnati, Indianapolis, Kansas City, Boise, Idaho, Austin, Texas and Memphis, Tenn., than they were this time last year.
These cities have historically been relatively affordable housing markets and generally have a large inventory of unsold homes, making the central region all the more remarkable for its sudden strong price growth. According to the Federal Housing Finance Agency, home prices in Tennessee have risen by far the most strongly in the country.
Standard & poor’s dow Jones index, managing director of Craig raza (Craig Lazzara) told CNBC, the regional house prices trend is largely associated with outbreaks contributed to new ways of working, “although the outbreak affect house prices all history (record) hasn’t appeared, but the past few months data and outbreak drive potential buyers from city apartment to suburban residential point of view is consistent with the”.
Nationally, home prices in the S&P Case Shiller Index rose by a significant 8.4 per cent in October from a year earlier, surpassing the 7 per cent rise in September 2020. It was the biggest one-month gain in more than a decade.
As house prices accelerate, traditionally more affordable markets are becoming less affordable. At the end of 2020, 55 percent of the median home price in counties was unaffordable for the average wage earner, according to Attom Data Solutions, a much larger share than a year earlier.
“These rising prices more than offset the benefit of lower mortgage rates, requiring more money to pay down the down payment, which is a big problem for first time buyers and less important for others,” he said. Peter Boockvar, managing director of Bleakley Advisory Group, told CNBC.
Mortgage rates hit record lows in 2020, spurring demand for homes, giving buyers more purchasing power and driving up home prices. While a rise in mortgage rates in 2021 is unlikely, the benefits are far less than they once were as home prices continue to rise.
“Those factors may continue in the short term, and hopefully will encourage more buyers to come into the market as the economy gradually improves,” said Matthew Speakman, an economist at Zillow real estate. Taken together, this red-hot rate of price appreciation will continue through 2021.”
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