U.S. housing boom under the epidemic: house prices are soaring at the fastest rate since 2014

category:Finance
 U.S. housing boom under the epidemic: house prices are soaring at the fastest rate since 2014


According to data released earlier this month by the association of real estate agents (NAR), prices of single family homes in major cities across the United States rose in the third quarter of 2020. U.S. single family home prices rose 12% in the quarter from a year earlier to $313500, according to data.

Behind the prosperity of the property market

Normally, the housing market will be hit hard in the recession, but the U.S. housing market has been booming in this downturn.

The analysis shows that, during the epidemic period, peoples housing preference changed, the shortage of houses for sale, and the mortgage interest rate was at a historical low, all these factors jointly promoted the U.S. real estate market to soar.

After the outbreak, many families choose to leave the city to live and work in better suburbs. The ability to work remotely has spurred a surge in demand for second homes in resorts such as Cape Cod and aspen.

Managing director and global head of index investment strategy at S & P Dow Jones Indexes CraigJ.Lazzara House prices were very strong in September, which could reflect the release of pent up demand earlier this year and could also herald strength in the future as the epidemic is driving potential buyers from urban apartments to suburban homes.

In addition, the shortage of supply has also supported house prices. According to NAR data, total house inventory continued to decline in October, down 2.7% from a month ago to 1.42 million units, down 19.8% from the same period last year. According to the current sales rate, the existing housing inventory in October will be sold out in 2.5 months, the lowest level in history.

The ongoing virus pandemic in the United States has stimulated consumer interest in personal space. Despite the continued spread of covid-19, low interest rates also support consumer demand, Nomura said in a research report. Due to strong demand and insufficient supply, we expect the case Shiller house price index to rise further for the rest of 2020.

Many recent housing indicators are very optimistic and we believe that low mortgage rates will continue to support housing activity, JPMorgan said in a recent research report. The recent strong sales momentum will certainly constitute an upward thrust on house prices.

Nevertheless, just as the housing market flourished during the outbreak, it is likely that the market will cool down as the epidemic disappears.

Is the house price of key cities rising or falling? What are the policy signals of strong concern? Which areas should the real estate industry choose? What conditions do you need to get on and off? How to redefine high-quality assets in the moment where there is no place to invest?

On November 30, 20:00-22:00, Changsheng time u00b7 2020 property market closing meeting, Yao Changsheng, deputy editor in chief of Netease media and senior real estate personage, gave a live interpretation of the course. The price of the course was 1999 yuan / person, and the top 200 applicants were entitled to a special price of 799 yuan / person. If you have any questions, please add the Houchang village fairy wechat (money163888) for consultation.

Source: CFA editor in charge: Zhong Qiming_ NF5619