Home Prices Jumped Across the U.S. in Second Quarter

[mahatmakanejeeves]

Source: The Wall Street Journal.

ECONOMY ECONOMIC DATA

Home Prices Jumped Across the U.S. in Second Quarter

National Association of Realtors numbers show supply of existing homes for sale can’t keep up with demand

By Nicole Friedman
https://twitter.com/nicolefriedman
[e-mail]
Updated Aug. 12, 2021 10:55 am ET

Home prices surged in almost every corner of the U.S. in the second quarter as robust demand continued to overwhelm the supply of homes for sale.

The median sales price for single-family existing homes was higher in the quarter compared with a year ago for 182 of the 183 metro areas tracked by the National Association of Realtors, the association said Thursday. In 94% of those metro areas, median prices rose by more than 10% from a year earlier.

Nationwide, the median single-family existing-home sales price rose 22.9% in the second quarter to $357,900 from a year ago, a record in data going back to 1968, NAR said.

Home prices have climbed in the past year as low interest rates and increased remote work spurred new homebuying demand. At the same time, the inventory of homes on the market has dropped as potential sellers canceled or delayed their plans to move. The homes that do hit the market sell quickly, often after a bidding war.

Still, the homebuying frenzy has shown signs of a slowdown in recent months. High prices have attracted more sellers to the market and pushed some buyers to the sidelines.

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Read more: https://www.wsj.com/articles/home-prices-climbed-across-the-u-s-in-second-quarter-11628777839

[StClone]

1. In my town they may be asking WAY TOO MUCH$

I see houses sitting for months unsold!

[Johnny2X2X]

3. We're starting to see that too

Sellers and their realtors are trying to cash in and just throwing any crazy price up there and homes are now sitting for weeks or months.

That's a sign to me that at least in my area, the housing market will cool off some. Now that doesn't mean that values will fall, just that these crazy bidding wars where people offer 15% more than asking and waive inspections is coming to an end.

The bad part is these last couple years have priced a lot of shoppers out of owning a home despite record low interest rates. The good part is that during the 2020 recession there was a lot of help for homeowners to miss payments if they needed so an unusually high number of people didn't lose their homes.

I've seen just some ridiculous prices here in Grand Rapids MI. $280K for "starter" homes that need a ton of work and have tiny lots if they're in the right neighborhood. Friends are trying to sell their home right now and think their realtor priced them way too high and they're 6 weeks in with no offers.

[StClone]

4. An older guy who has tens of thousands for a down payment

I know, has been working for almost two years to find an affordable, liveable place and has come to realize that dream is over. My daughter's mother-in-law just sold her very modest ranch in Sun Prairie, Wisconsin for 280K: It cost her 135K 7 years ago!

[Johnny2X2X]

5. It's still going to be an OK time to buy though if the bidding wars ceased.

Decent credit going FHA you can get 3% financing right now. The bidding wars will end even if prices don't come down and then people will land in a house.

Renting is a killer right now, you're still getting into a $250K starter home for less than rent for most families. But you're also still going to need about $15K for down payment plus closing costs.

[intheflow]

2. Dear WSJ: This is not good news.

1) Home sales were down last year due to the pandemic. No one wanted to go into other people's homes and spread disease, or worse, catch something.

2) Most of the houses bought up in my area have been by flippers and landlords, who have turned already impossible housing shortage into an exploit-a-thon for renters and new homeowners.

[madville]

6. Coworker just sold his house in Florida for $265k

He paid $180k for it 3 years ago, almost a 50% increase, that's crazy. Another former coworker in FL was telling me a couple of months ago they had to bid $40k over asking price to finally get in a house in Jacksonville, FL.