The nation’s real estate market over the past year has been the hottest in the past 14 years, with demand for homes outstripping supply. The real estate website Zillow pointed out that the median home price in more than a dozen metropolitan areas, all showing double-digit percentage point growth; of the properties sold in February, an average of three out of four sold in less than a month.
Zillow data show that Connecticut’s large city of Stamford (Stamford) in January this year compared with the same period last year, the median home price soared 19%. Wells Fargo Group (Wells Fargo & Co) senior economist Vitner (Mark Vitner) said: “Home prices are rising everywhere, in the early stages of economic recovery, home prices can rise at this rate and magnitude, let me be very surprised.”
The new crown epidemic has slowed down a bit, and at the beginning of the economic recovery, home prices are rising everywhere in the United States, and the speed and magnitude are rising, surprising experts. The picture shows the “family station” selling building materials in Boston, business is booming, the fourth quarter of last year’s results rose wildly by 25%, showing their own repair and construction into a strong force.
Young people are buying their first homes from far away from work to increase their buying power
The main reasons for the surge in demand in the housing market are easy to understand, as mortgage rates are now at almost historic lows due to the new pneumonia epidemic. First-time buyers and buyers on a budget are competing fiercely in the housing market, and there is a lot of bidding going on.
Andrea White, a Redfin Group real estate agent, said, “The housing market is breaking the hearts of buyers and making sellers quite happy.”
Many people have been working remotely from home over the past year, so they need more space; others have chosen to move to areas farther away from work because they don’t need to commute. Those who did not lose their jobs last year have seen their savings increase as a result of receiving bailout checks, getting relief on their school loans, and saving money on travel and entertainment expenses, increasing their flexibility in buying a home.
Mortgage lending is at a record low and housing supply is tight, fueling the home buying boom.
In contrast, the housing market is in short supply. The number of new construction cases decreased in the years after the financial crisis, and people tend to live in the same house for a longer period of time. Despite the soaring housing market, many homeowners are still reluctant to sell for fear of bidding. Low mortgage rates have also made people choose to refinance their homes, reducing their willingness to move again.
Federal Housing Finance Administration (FHFA) data show that in January, a family detached house (Single-family house) in the national prices, compared to the same period last year climbed 12%, the largest increase since 1991. The National Association of Realtors (NAR) said the median property price in February rose 15.8% from last year to $331,000.
Entering the spring of the peak housing market season, more properties are expected to be put on the market for sale, but NAR expects an increase in the number, I’m afraid it will not be able to cool the housing market. Now even in the big cities where high prices and property sales cooled last spring, the housing market is showing signs of heating up. Manhattan condominium (condo) and co-op sales are better than the same period last year for the first time in four seasons, and San Francisco housing transactions are up 19% over last year.
Builders are also stepping up their game to meet market demand, but there is still a shortage of millions of housing units nationwide. Economists and experts expect the housing market to continue to heat up this year until mortgage rates rise, more properties come up for sale, and buyers exit the market.
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