US Home Prices Just Accelerated At Their Fastest Pace On Record

[The Purge]

Latest 'Today News ^ | 6-29-2021

US Home Prices Just Accelerated At Their Fastest Pace On Record

According to the Case-Shiller indices, home prices in America’s 20 largest cities have exploded at 14.88% YoY in April – the highest since Nov 2005…

Phoenix, San Diego, Seattle reported highest year-over-year gains among 20 cities surveyed…

All cities are seeing home prices appreciate at double digits (a little higher than The Fed’s 2% “goal”).

But, on a national scale, it gets even worse. Case-Shiller’s National Home Price Index rose 14.59% YoY in April – that is the fastest pace of home price inflation on record (back to 1988)

That is faster than the prior peak acceleration in September 2005!

“We have previously suggested that the strength in the U.S. housing market is being driven in part by reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes,” Craig Lazzara, global head of index investment strategy at S&P Dow Jones Indices, said in statement.

“April’s data continue to be consistent with this hypothesis. This demand surge may simply represent an acceleration of purchases that would have occurred anyway over the next several years. Alternatively, there may have been a secular change in locational preferences, leading to a permanent shift in the demand curve for housing.”

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The question for Jay Powell is – explain how this is “transitory” if you’re never gonna taper or hike rates?

 

[Rambunctious]

Dems hand out money for votes but it raises the cost of everything so high that no one can afford anything....

 

[Dekster]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

 

[Rambunctious]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

I don't think a lower loan interest rate will make up for a 25% increase in the price of a home...especially when fuel and food and the basic necessities are so expensive....two years ago 48% of Americans lived paycheck to paycheck the lowest that number has been in a long time...today it was announced that now 54% of American are living paycheck to paycheck....elections have harsh consequences....
You won't hear this on CNN or MSNBC.....

 

[Dekster]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

I don't think a lower loan interest rate will make up for a 25% increase in the price of a home...especially when fuel and food and the basic necessities are so expensive....two years ago 48% of Americans lived paycheck to paycheck the lowest that number has been in a long time...today it was announced that now 54% of American are living paycheck to paycheck....elections have harsh consequences....
You won't hear this on CNN or MSNBC.....

The 25% increase in the home you sell to buy the home you want is a wash.

 

[Rambunctious]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

I don't think a lower loan interest rate will make up for a 25% increase in the price of a home...especially when fuel and food and the basic necessities are so expensive....two years ago 48% of Americans lived paycheck to paycheck the lowest that number has been in a long time...today it was announced that now 54% of American are living paycheck to paycheck....elections have harsh consequences....
You won't hear this on CNN or MSNBC.....

The 25% increase in the home you sell to buy the home you want is a wash.

So....so much for buying up?.....

 

[Dekster]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

I don't think a lower loan interest rate will make up for a 25% increase in the price of a home...especially when fuel and food and the basic necessities are so expensive....two years ago 48% of Americans lived paycheck to paycheck the lowest that number has been in a long time...today it was announced that now 54% of American are living paycheck to paycheck....elections have harsh consequences....
You won't hear this on CNN or MSNBC.....

The 25% increase in the home you sell to buy the home you want is a wash.

So....so much for buying up?.....

If I can get 25% more for my house and buy another house with more whatever it is I want and pay the same payment with less going to interest and more going to principal then yes I can buy "up". Specifically, over a 30 year mortgage, every percent interest difference is $30K per $100K borrowed. Rates go up by 1%, you lose $30K in purchasing power on that $100K. Rates go down 1%, you gain $30K in purchasing power

 

[Rambunctious]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

I don't think a lower loan interest rate will make up for a 25% increase in the price of a home...especially when fuel and food and the basic necessities are so expensive....two years ago 48% of Americans lived paycheck to paycheck the lowest that number has been in a long time...today it was announced that now 54% of American are living paycheck to paycheck....elections have harsh consequences....
You won't hear this on CNN or MSNBC.....

The 25% increase in the home you sell to buy the home you want is a wash.

So....so much for buying up?.....

If I can get 25% more for my house and buy another house with more whatever it is I want and pay the same payment with less going to interest and more going to principal then yes I can buy "up". Specifically, over a 30 year mortgage, every percent interest difference is $30K per $100K borrowed. Rates go up by 1%, you lose $30K in purchasing power on that $100K. Rates go down 1%, you gain $30K in purchasing power

Dekster....if you sell your home for the going price how are you going to afford an upgrade in home and location unless your salary goes up too....in other words no one will move unless they have to...this will crush the housing market and hurt the construction and remodel industry...we saw this game before in 2009....

 

[Rye Catcher]

Dems hand out money for votes but it raises the cost of everything so high that no one can afford anything....

Wow, what a dumb post. Maybe you might consider not posting when you know nothing about everything?

 

[Rye Catcher]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

I don't think a lower loan interest rate will make up for a 25% increase in the price of a home...especially when fuel and food and the basic necessities are so expensive....two years ago 48% of Americans lived paycheck to paycheck the lowest that number has been in a long time...today it was announced that now 54% of American are living paycheck to paycheck....elections have harsh consequences....
You won't hear this on CNN or MSNBC.....

The 25% increase in the home you sell to buy the home you want is a wash.

So....so much for buying up?.....

If I can get 25% more for my house and buy another house with more whatever it is I want and pay the same payment with less going to interest and more going to principal then yes I can buy "up". Specifically, over a 30 year mortgage, every percent interest difference is $30K per $100K borrowed. Rates go up by 1%, you lose $30K in purchasing power on that $100K. Rates go down 1%, you gain $30K in purchasing power

Dekster....if you sell your home for the going price how are you going to afford an upgrade in home and location unless your salary goes up too....in other words no one will move unless they have to...this will crush the housing market and hurt the construction and remodel industry...we saw this game before in 2009....

LOL. Interest rates have gone down, so if someone hasn't refinanced in the recent years and sells a home which they purchased decades ago, they can move up and pay less per month. Maybe you might consider not posting when you don't have a clue?

 

[Rambunctious]

Dems hand out money for votes but it raises the cost of everything so high that no one can afford anything....

Wow, what a dumb post. Maybe you might consider not posting when you know nothing about everything?

Its happening right in front of your eyes tard....Biden handing out money like water and inflation going through the roof...check your last grocery tab....

 

[Rambunctious]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

I don't think a lower loan interest rate will make up for a 25% increase in the price of a home...especially when fuel and food and the basic necessities are so expensive....two years ago 48% of Americans lived paycheck to paycheck the lowest that number has been in a long time...today it was announced that now 54% of American are living paycheck to paycheck....elections have harsh consequences....
You won't hear this on CNN or MSNBC.....

The 25% increase in the home you sell to buy the home you want is a wash.

So....so much for buying up?.....

If I can get 25% more for my house and buy another house with more whatever it is I want and pay the same payment with less going to interest and more going to principal then yes I can buy "up". Specifically, over a 30 year mortgage, every percent interest difference is $30K per $100K borrowed. Rates go up by 1%, you lose $30K in purchasing power on that $100K. Rates go down 1%, you gain $30K in purchasing power

Dekster....if you sell your home for the going price how are you going to afford an upgrade in home and location unless your salary goes up too....in other words no one will move unless they have to...this will crush the housing market and hurt the construction and remodel industry...we saw this game before in 2009....

LOL. Interest rates have gone down, so if someone hasn't refinanced in the recent years and sells a home which they purchased decades ago, they can move up and pay less per month. Maybe you might consider not posting when you don't have a clue?

I said the interest rates are down for now but the total cost of a home is quickly climbing out of reach...just like everything else....

 

[evenflow1969]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

I don't think a lower loan interest rate will make up for a 25% increase in the price of a home...especially when fuel and food and the basic necessities are so expensive....two years ago 48% of Americans lived paycheck to paycheck the lowest that number has been in a long time...today it was announced that now 54% of American are living paycheck to paycheck....elections have harsh consequences....
You won't hear this on CNN or MSNBC.....

The 25% increase in the home you sell to buy the home you want is a wash.

So....so much for buying up?.....

Over the term a thirty year loan low interest rates we see today will more than make up for the 25 percent increase in price. Home prices are a result of low interest rates and speculation currently. It is a bubble. Likely to burst soon. I am selling all real estate right now. Plan on sitting in a camp ground in my camper wait for burst of bubble then buy repos like crazy.

 

[Dekster]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

I don't think a lower loan interest rate will make up for a 25% increase in the price of a home...especially when fuel and food and the basic necessities are so expensive....two years ago 48% of Americans lived paycheck to paycheck the lowest that number has been in a long time...today it was announced that now 54% of American are living paycheck to paycheck....elections have harsh consequences....
You won't hear this on CNN or MSNBC.....

The 25% increase in the home you sell to buy the home you want is a wash.

So....so much for buying up?.....

If I can get 25% more for my house and buy another house with more whatever it is I want and pay the same payment with less going to interest and more going to principal then yes I can buy "up". Specifically, over a 30 year mortgage, every percent interest difference is $30K per $100K borrowed. Rates go up by 1%, you lose $30K in purchasing power on that $100K. Rates go down 1%, you gain $30K in purchasing power

Dekster....if you sell your home for the going price how are you going to afford an upgrade in home and location unless your salary goes up too....in other words no one will move unless they have to...this will crush the housing market and hurt the construction and remodel industry...we saw this game before in 2009....

They calculate it based on your monthly payments as a percentage of income. If you got approved for $100K at 5% then you can get approved for $130K at 4%, $160K at 3% and $190K at 2% all for the same payment per month.

 

[Rambunctious]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

I don't think a lower loan interest rate will make up for a 25% increase in the price of a home...especially when fuel and food and the basic necessities are so expensive....two years ago 48% of Americans lived paycheck to paycheck the lowest that number has been in a long time...today it was announced that now 54% of American are living paycheck to paycheck....elections have harsh consequences....
You won't hear this on CNN or MSNBC.....

The 25% increase in the home you sell to buy the home you want is a wash.

So....so much for buying up?.....

Over the term a thirty year loan low interest rates we see today will more than make up for the 25 percent increase in price. Home prices are a result of low interest rates and speculation currently. It is a bubble. Likely to burst soon. I am selling all real estate right now. Plan on sitting in a camp ground in my camper wait for burst of bubble then buy repos like crazy.

You may be onto something about moving into a camper...but trying to find a place to park it soon if not already will be impossible....

 

[Rambunctious]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

I don't think a lower loan interest rate will make up for a 25% increase in the price of a home...especially when fuel and food and the basic necessities are so expensive....two years ago 48% of Americans lived paycheck to paycheck the lowest that number has been in a long time...today it was announced that now 54% of American are living paycheck to paycheck....elections have harsh consequences....
You won't hear this on CNN or MSNBC.....

The 25% increase in the home you sell to buy the home you want is a wash.

So....so much for buying up?.....

If I can get 25% more for my house and buy another house with more whatever it is I want and pay the same payment with less going to interest and more going to principal then yes I can buy "up". Specifically, over a 30 year mortgage, every percent interest difference is $30K per $100K borrowed. Rates go up by 1%, you lose $30K in purchasing power on that $100K. Rates go down 1%, you gain $30K in purchasing power

Dekster....if you sell your home for the going price how are you going to afford an upgrade in home and location unless your salary goes up too....in other words no one will move unless they have to...this will crush the housing market and hurt the construction and remodel industry...we saw this game before in 2009....

They calculate it based on your monthly payments as a percentage of income. If you got approved for $100K at 5% then you can get approved for $130K at 4%, $160K at 3% and $190K at 2% all for the same payment per month.

Sure but who will be able to afford a more expensive home?....interest rates have been low for a long time....

 

[evenflow1969]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

I don't think a lower loan interest rate will make up for a 25% increase in the price of a home...especially when fuel and food and the basic necessities are so expensive....two years ago 48% of Americans lived paycheck to paycheck the lowest that number has been in a long time...today it was announced that now 54% of American are living paycheck to paycheck....elections have harsh consequences....
You won't hear this on CNN or MSNBC.....

The 25% increase in the home you sell to buy the home you want is a wash.

So....so much for buying up?.....

Over the term a thirty year loan low interest rates we see today will more than make up for the 25 percent increase in price. Home prices are a result of low interest rates and speculation currently. It is a bubble. Likely to burst soon. I am selling all real estate right now. Plan on sitting in a camp ground in my camper wait for burst of bubble then buy repos like crazy.

You may be onto something about moving into a camper...but trying to find a place to park it soon if not already will be impossible....

Already there. Camper parked. Last property closes in next 12 days. Got wifi at campground so I can keep eye on market. Next gathering sub contractor list for where I want to purchase. According to Fannie and Freddie Florida and Texas have most mortgages currently under water. Likely best deals available in those areas. Will watch those areas but really want to invest in great lakes area. Currently trying to figure out where largest amount of defaults will be in those areas.

 

[Rambunctious]

At low interest rates, people can get more house than they could at higher rates and pay the same over the life of a 35-30 year loan. That alone is going to encourage people to try to move up the property ladder.

I don't think a lower loan interest rate will make up for a 25% increase in the price of a home...especially when fuel and food and the basic necessities are so expensive....two years ago 48% of Americans lived paycheck to paycheck the lowest that number has been in a long time...today it was announced that now 54% of American are living paycheck to paycheck....elections have harsh consequences....
You won't hear this on CNN or MSNBC.....

The 25% increase in the home you sell to buy the home you want is a wash.

So....so much for buying up?.....

Over the term a thirty year loan low interest rates we see today will more than make up for the 25 percent increase in price. Home prices are a result of low interest rates and speculation currently. It is a bubble. Likely to burst soon. I am selling all real estate right now. Plan on sitting in a camp ground in my camper wait for burst of bubble then buy repos like crazy.

You may be onto something about moving into a camper...but trying to find a place to park it soon if not already will be impossible....

Already there. Camper parked. Last property closes in next 12 days. Got wifi at campground so I can keep eye on market. Next gathering sub contractor list for where I want to purchase. According to Fannie and Freddie Florida and Texas have most mortgages currently under water. Likely best deals available in those areas. Will watch those areas but really want to invest in great lakes area. Currently trying to figure out where largest amount of defaults will be in those areas.

Get lots of solar and battle born batteries....