With low interest rates and an imbalance between housing supply and demand, the U.S. is in a “housing scramble”.
Analysts say that the pace of sales in January this year is estimated to take only 1.9 months to sell out all the homes listed on the market, far below the healthy level of supply and demand of six or seven months to sell out.
Today, the hot U.S. real estate market has recorded the fastest sales growth in fifteen years.
This can really only be described as a super seller’s market, not just a seller’s market, and the imbalance between supply and demand is not going away anytime soon,” said Odeta Kushi, deputy chief economist at First American Financial.
A hot real estate market
The U.S. real estate market is currently experiencing its biggest upturn since 2006, and unlike the last market, today’s buyers have higher credit ratings, are more generous with their money and are putting down larger deposits.
Now, U.S. second-home sales have soared to the highest level in 15 years, and many economists predict that this trend will continue this year.
The National Association of Realtors (National Association of Realtors) data released earlier this month showed that there were 1.03 million homes for sale in the United States at the end of February, unchanged from January, which was the lowest figure since 1982.
The Standard & Poor’s Case-Shiller Home Price Index showed that the average home price in the nation’s major metropolitan areas rose 11.2 percent in the year ending in January, the highest annual increase since February 2006.
In addition, the U.S. Federal Housing Finance Agency (Federal Housing Finance Agency) home price index released Tuesday showed that home prices rose 12 percent in January compared with a year earlier, a new record annual increase since 1991.
Including Idaho and Arizona, including the largest annual increase in the mountains, 14.8%, including Texas and Louisiana, including the Midwest, the lowest annual increase of 10.2%.
“The “super seller’s market” makes home sellers and landlords across the U.S. the biggest beneficiaries, while first-time homebuyers and others with lower incomes have a harder time “getting on board.
Who’s behind it
Mortgage rates have fallen to historic lows of less than 3%, millions of millennials are entering their prime home buying years, new home construction is lagging behind demand, and landlords are less willing to sell their homes under the impact of the new crown epidemic ……
The low interest rates and tight housing supply have been the main drivers behind the booming U.S. housing market.
Craig Lazzara, global head of index investment strategy at S&P Dow Jones, has pointed out that the epidemic began to affect the economy early last year and the impact on home prices was unclear, with home price growth accelerating and slowing in May and June, and has been steadily accelerating since then.
The supply of homes across the U.S. has been pushed to record lows as potential sellers worry that letting strangers look at their homes will increase the risk of viral infection.
Previous analysis estimated that it would take just 1.9 months for all listed completed homes on the market to sell out at this January’s sales pace, well below the healthy level of supply and demand of six or seven months to sell out.
Since the outbreak of the new crown epidemic, central banks have looked to keep interest rates low and sustain the post-epidemic recovery, with the U.S. 30-year mortgage rate having fallen to a record low of less than 3%.
Falling borrowing costs have set the stage for a booming housing market and given homeowners the opportunity to refinance for cheaper loans.
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