Home prices unexpectedly rise 19.2% in January: Case-Shiller

[Lovin Jesus]

Home prices unexpectedly rose 19.2% year-over-year in January, according to the S&P CoreLogic Case-Shiller Index, as limited supply and a race to lock in rising mortgage rates drove enticed buyers.

The 10-city composite saw an annual increase of 17.5% year-over-year in January, up from 17.1% the previous month, while the 20-city composite grew 19.1% year-over-year, up from 18.6% in the previous month. On a monthly basis, the 20-city index climbed 1.4% in January when non-seasonally adjusted and 1.8% when seasonally adjusted.

Cities With the Highest Price Gains
Phoenix: +32.6%

Tampa: +30.8%

Miami: +28.1%

Source: Case-Shiller

Cities that saw prices rise the least were Washington, Minneapolis and Chicago.

Cities With the Lowest Price Gains
Washington: +11.2%

Minneapolis: +11.8%

Chicago: +12.5%

Source: Case-Shiller

More
https://www.foxbusiness.com/real-estate/home-prices-january-case-shiller

 

[Matthew6:33]

'Unexpectedly'

 

[Jeff K]

The cost to build the exact same 2100 basic sf home, from November 2021 to today has gone up almost $40,000.00.

Still can't build them fast enough to keep up with the demand.

 

[NewWine2020]

Home prices unexpectedly rose 19.2% year-over-year in January, according to the S&P CoreLogic Case-Shiller Index, as limited supply and a race to lock in rising mortgage rates drove enticed buyers.

The 10-city composite saw an annual increase of 17.5% year-over-year in January, up from 17.1% the previous month, while the 20-city composite grew 19.1% year-over-year, up from 18.6% in the previous month. On a monthly basis, the 20-city index climbed 1.4% in January when non-seasonally adjusted and 1.8% when seasonally adjusted.

Cities With the Highest Price Gains
Phoenix: +32.6%

Tampa: +30.8%

Miami: +28.1%

Source: Case-Shiller

Cities that saw prices rise the least were Washington, Minneapolis and Chicago.

Cities With the Lowest Price Gains
Washington: +11.2%

Minneapolis: +11.8%

Chicago: +12.5%

Source: Case-Shiller

More
https://www.foxbusiness.com/real-estate/home-prices-january-case-shiller

I'm in a suburb of Phoenix right now, living in our in-laws winter home. The situation w/ not just housing but renting a house or even an apartment is crazy bad. My wife and I were actually just getting ready to start looking at houses but there's nothing we can afford in any area we would feel safe living in right now.

I blame the economic refugees from Lib cities and the institutional investors (Black Rock, etc.) who are buying up almost entire neighborhoods of homes for well over asking price (for cash while not requiring any inspection of the homes) so that they can RENT these homes out to the Californians who think a $2500 a mo. is just fine. Police and firefighters are increasingly struggling to find affordable housing here.

What the institutional investors are doing to the single family housing market should be criminal. You will never convince me that this is not the opening salvo of the 'great Reset" where, ultimately we will "own nothing and be happy."

 

[cheeky200386]

I'm in a suburb of Phoenix right now, living in our in-laws winter home. The situation w/ not just housing but renting a house or even an apartment is crazy bad. My wife and I were actually just getting ready to start looking at houses but there's nothing we can afford in any area we would feel safe living in right now.

I blame the economic refugees from Lib cities and the institutional investors (Black Rock, etc.) who are buying up almost entire neighborhoods of homes for well over asking price (for cash while not requiring any inspection of the homes) so that they can RENT these homes out to the Californians who think a $2500 a mo. is just fine. Police and firefighters are increasingly struggling to find affordable housing here.

What the institutional investors are doing to the single family housing market should be criminal. You will never convince me that this is not the opening salvo of the 'great Reset" where, ultimately we will "own nothing and be happy."

I completely agree. It's same here in a suburb 1 hour away in MA where my husband and I love in my mother's home. Rent is outrageous and we are now priced out of buying a home in the state. It's extremely upsetting that we can't afford a home with his salary as a police officer and me working part time while trying to stay at home with our son.

We looked in Florida and it's the same.

 

[Belle of Grace]

Rent is outrageous and we are now priced out of buying a home in the state. It's extremely upsetting that we can't afford a home with his salary as a police officer and me working part time while trying to stay at home with our son.

Cheeky, as mortgage rates begin to rise, it's possible that the purchase price will go down a little. I'm no economist, so someone on here can perhaps explain the correlation between interest rates and selling price of real estate. In previous years I've noticed a relationship between the two. I really wish that your family could move to Florida, but I read that Florida's pop is the third largest in the US. Maybe there's a state in the southeast that might be less expensive, like S. Carolina or Alabama.

 

[cheeky200386]

Cheeky, as mortgage rates begin to rise, it's possible that the purchase price will go down a little. I'm no economist, so someone on here can perhaps explain the correlation between interest rates and selling price of real estate. In previous years I've noticed a relationship between the two. I really wish that your family could move to Florida, but I read that Florida's pop is the third largest in the US. Maybe there's a state in the southeast that might be less expensive, like S. Carolina or Alabama.

I believe that you'll end up owning more in the end because of the higher interest rate. It would be better to pay all or as much cash with lower prices to avoid the higher rates.

 

[Tall Timbers]

Cheeky, as mortgage rates begin to rise, it's possible that the purchase price will go down a little. I'm no economist, so someone on here can perhaps explain the correlation between interest rates and selling price of real estate. In previous years I've noticed a relationship between the two. I really wish that your family could move to Florida, but I read that Florida's pop is the third largest in the US. Maybe there's a state in the southeast that might be less expensive, like S. Carolina or Alabama.

Right now the housing market is behind the curve because of the work stoppages during COVID. That's why housing prices are up pretty much everywhere to some degree. Because housing price increases are far outstripping their normal inflation rate, there will likely be a correction in prices at some point, but only if builders are able to catch up.

What happened during COVID with the work stoppages as the govmint all but shut the country down is unprecedented so we'll only know with time how things play out.

I really wanted to purchase a home in Cheyenne but price increases have reached a point where I'm probably not willing to make an offer on a house. So I'm looking more closely at my second choice state which will be less expensive though prices have increased there, too.

 

[Belle of Grace]

What happened during COVID with the work stoppages as the govmint all but shut the country down is unprecedented so we'll only know with time how things play out.

Thanks, TT. Covid has definitely played a huge part in all this, and we've not been through something like it before in my lifetime. So my personal observations regarding home prices and interest rates over the years should be ignored.

 

[Tall Timbers]

Thanks, TT. Covid has definitely played a huge part in all this, and we've not been through something like it before in my lifetime. So my personal observations regarding home prices and interest rates over the years should be ignored.

But you're right about the mortgage rate issue... I think... Once we run out of buyers who have a lot of money at the end of the month, prices should start declining. We may not have peaked price-wise, but from some articles I've read it appears that the housing market is already cooling some in terms of number of homes that are changing hands. Prices are still high right now but will likely decrease some as we're way ahead of normal home value appreciation.