The price of homes in America recorded a 19.1% annual increase in September, as home and rental costs remain high across the country.
As reported by ABC News, “The S&P CoreLogic Case-Shiller 20-city home price climbed 19.1% in September from a year earlier. The strong price gains marked a deceleration from August’s 19.6% year-over-year increase. Still, September prices in all 20 cities set new records.”
Not all locations are seeing the same trends, as the market tends to vary in different areas.
The outlet reported that Phoenix saw a 33.1% gain, with Tampa at 27.7%, and Miami was at 25.2%, with every one of the 20 cities showing gains in the double digits. Chicago and Minneapolis saw the least amount of increase — with Chicago at 11.8% and Minneapolis at a 12.8% increase.
CNBC reported further, noting, “The 10-city composite rose 17.8% from a year ago, down from an 18.6% gain in August. The 20-city composite gained 19.1% year over year, down from 19.6% in the previous month.”
“If I had to choose only one word to describe September 2021′s housing price data, the word would be ‘deceleration,’” Craig Lazzara, managing director at S&P Dow Jones Indices, said, per the outlet. “Housing prices continued to show remarkable strength in September, though the pace of price increases declined slightly.”
Lazzara added, per ABC, “We have previously suggested that the strength in the U.S. housing market is being driven by households’ reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes.’’
Business Report added:
Last week, the National Association of Realtors reported that sales of previously occupied homes rose 0.8% last month to a seasonally adjusted annual rate of 6.3 million, the strongest annual pace since January. The Commerce Department reported last week that new-home prices edged up a disappointing 0.4% last month as median prices rose nearly 18% from a year earlier to a record $407,700.
The low availability of homes, alongside investors getting involved in the market, could be leading to the high cost of houses. Rental prices have gone up in many areas across the country, as well.
As reported by National Mortgage Professional, “[a]verage monthly rents increased by 13% nationwide within the past year, marking the highest growth rate in two years.”
In 29 of the 50 biggest metropolitan locations in the country, rent price jumps surpassed mortgage fees for new homebuyers.
Experts say the speedy increase in rents could lead to more inflation issues as workers turn to their companies to ask for higher salaries as rent prices go up.
As reported by The Daily Wire last week, new information from the U.S. Census Bureau revealed that fewer Americans are moving to different houses than has been recorded in the past, which could be directly related to the skyrocketing of the price of homes across the country.
As reported by The Hill:
New data from the U.S. Census Bureau shows just 8.4 percent of Americans live in a different house than they lived in a year ago. That is the lowest rate of movement that the bureau has recorded at any time since 1948. That share means that about 27.1 million people moved homes in the last year, also the lowest ever recorded.
As the Census Bureau reported on November 17th, “In 2021, 27.1 million Americans reported living at a different residence than a year earlier, compared to 29.8 million people in 2020. This represents an 8.4% mover rate, the lowest documented rate in over 70 years.”
The moving trends could also be impacting the real estate market. While the total number of housing units grew by 6.6% over the last decade, the number of vacant units dropped by 8.6%, The Hill notes.
As reported by The Daily Wire earlier this month, Century 21 CEO Michael Miedler said the American real estate market will continue to be heated due to the prospect of mortgage rate increases as well as pent-up demand.
In an interview with Fox Business host Maria Bartiromo, Miedler said the market is hot because “a lot of buyers are trying to rush in and beat any more increases in the mortgage rate.” He continued “to see the market moving in a very kind of fast direction as folks have a lot of pent-up demand in trying to buy homes here in this country.”
At the same time, there is a short supply of new homes: “From the downturn that happened in 2008 to where we are at now, we are at historic lows on where folks are building.”