US Home Prices Set Record New High

Listen and learn. In 2020 Q2 DURING COVID the federal government suspended in person interviews and data collection. If you look at the tables below you will see the percent of homeownership of in person interviews is much lower than phone interviews. The simple weighting of the interviews toward phone interviews made it look like home ownership went up. No one considers that good data like no one considers the giant spike in wages because all the low wage people were laid off.



When the response rate of in person returned to more normal the next quarter they plummeted when they got back to more normalized data collection. People didn’t buy homes and sell them in record numbers as you can see in the purchases… they simply had bad data.

• During the first quarter of 2020, the monthly response rates were 82 percent in January, 83 percent in February, and 73 percent in March. During March, the suspensions started, which explains the significantly lower rate in this month as well. The table below shows some more detail. The month in sample is a result of the way the data is collected from sampled housing units - which is for a total of 8 months.
  

Link to the information the government spoon fed to you so you dont look silly.

https://www.census.gov/housing/hvs/files/qtr220/impact_coronavirus_20q2.pdf

 

See post #81

 

For most people that is typically the same time.

 

The federal reserve is a generator of Democratic Party propaganda?

 

There's a rather simply reason why home prices have gone through the roof. It's because buyers are willing to pay those prices and this is one of those reasons:
44% of flipped single-family home purchases were by private investors in 2023 i.e investors and specifically private equity funds paying all cash have been bidding up the price of homes.

That being said the combination of record high home prices, declining sales of existing homes and an increased inventory of unsold homes seems to be indicative of bubble that's about to burst. While nowhere near the situation of 2008 it wouldn't surprise me if we see a significant decline in the price of homes over the next several months.

 

Those trying to buy for the first time are as happy about this as you..

 

Obama?

Due in large part to the mortgage meltdown.

 

REALTORS!

 

Nope. Housing prices had recovered from the Great Recession by Obama’s first term.

Median Sales Price of Houses Sold for the United States

Housing starts/construction never fully got back on track, which is the undersupply we are dealing with now. The pandemic and rapid recovery really put that into view. Hard to believe based on local anecdotes as it seems the major builders are pushing bigger and more ambitious projects, but I guess it’s not enough nationally (and of course some of the desirable areas are just land constrained, land is either hella expensive or undevelopable).

 

Just take the loss and move on. You’re out of you depths on here.

 

In my area, we have an explosion of sfh teardowns, brought on by influxes of highly capitalized buyers / investors from elsewhere. We're seeing 3br2b homes valued under $400k be demolished and replaced by $1.5m+ homes. Never thought I'd see a 50-year old concrete block home be worth $300 per sf.
Net results: reducing supply of affordable homes for families and young people, pushing all home values to unreasonable levels, and causing worker shortages due to lack of housing (among many other effects to environment and quality of life.)
Don't see how that will change anytime soon here.

 

I dont run the Democratic Party. I do run my debate line on here and your ridiculousness was sufficiently sent into the corner with a funny pointy hat. You can’t even follow notes in surveys that are easily laid out so that you dont make a fool of yourself. You dont seem to mind though.

 

Well, this post helps me understand your motivation for the positions you are taking in these housing discussions. The bubble has a lot of homeowners feeling euphoric every time they look at their house’s Zestimate.

There are plenty of cash flush individuals whose money isn’t tied to their home value that may very well end up owning the houses that the home equity superstars are currently living in… at a discount.

Supply is rising, and demand is cooled. Prices, however, have not significantly dropped. This is a resilient market. That’s why I’m hesitant to predict a crash or major correction. The signs and signals are all there, but I don’t think the market works rationally. It would take a seller FOMO event to initiate any significant change.

 

And home ownership in the US peaked under President George W. Bush before the bubble burst and by the way it's actually higher now than it was under Trump.

Source:National Association of Home Builders

 

Housing inventories are rising to normal levels correct? And that is because of the high prices. If prices dropped wouldn’t inventories fall again? Thus prices rise again?

Doesn’t seem like a bubble but more of a supply issue with people trying to maximize their profit testing the upper ends of pricing until the consumer says no. Just a guess.

 

I get you are just trolling. Enjoy. If you’re embarrassed about missing the polling error in Q2 2020 don’t be. We can’t think less of your arguments.