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Last updated on February 3rd, 2021 at 11:52 am
In spite of the coronavirus pandemic affecting a larger part of the economy, the housing market has been doing phenomenally well.
Jim Baird, chief investment officer for Plante Moran Financial Advisors said, “I don’t think there’s any question that we’ve seen significant improvement, the question is ‘is it enough?’”
The existing home sales in September rose to a very high level, which was not seen in more than 14 years, reported The National Association of Realtors.
With so much of Americans’ wealth tied up in the home, they live in, that offers a welcome financial buffer in a decidedly uncertain economic moment in the U.S.
The National Association of Home Builders reported, this week, it has also been a boon for builders, who are as confident as they’ve ever been while the rush to meet the demands of a severely under-supplied housing market.
Indeed, single-family housing starts are proceeding at the fastest clip in 13 years.
The gains in home sales were concentrated in the higher end of the market, first-time buyers or those looking for affordable homes may be priced out of the market, it is fine for people with stable jobs who have been able to grab a house.
The NAR said the median price of an existing home is nearly 15% higher than last year. Sales in resort areas have been particularly strong.
Andy Walden, an economist and director of market research at Black Knight said, “While this has helped push home prices higher and improved equity positions for existing homeowners, it has created a challenging market for buyers, especially those shopping in the more affordable end of the market.”
Jim Baird said, “The outsized gains for pricier homes is another sign the crisis is falling harder on lower-income households.”
Reference Source: Reuters
