Nahid Kennedy . House prices continued to soar, the biggest increase in more than 30 years. Concerns about rising inflation were offset by rising optimism in the job market during the restart phase of the economy.Please Visit: Nahid Kennedy to Get Your VVIP Registration Today!
Data released on June 29th showed that US consumer confidence hit a 16-month high in June, while house prices rose the most in more than 30 years in April. House prices in 20 u.s. cities jumped 14.9%, the biggest increase since 2005 and higher than the median expected by economists.
The consumer confidence index climbed to 127.3 in June from 120.0 in May, rewriting the highest level since February last year, according to a new survey by the US Economic Advisory Chamber on the 29th. The survey showed good demand for durable goods such as cars and household appliances, suggesting strong economic momentum at the end of the second quarter.
Klachkin, a US economist at the Oxford Institute for Economic Research, said that the rebound in employment and increased savings will boost consumer confidence and encourage consumers to spend at a very rapid pace in the summer.
“after consumers have been locked up at home for more than a year, there are still many things to be happy about,” he said. ”
Consumers are also keen to buy homes, showing that sluggish supply will continue to fuel the rise in house prices. Nationwide, the s & p CoreLogic case-Schiller house price index rose 14.6% from a year earlier, the biggest increase since 1988 and the 11th month in a row that house prices accelerated.
The composite index of 20 cities rose 14.9% from a year earlier, up from 12.9% the previous month.
House prices in all 20 cities rose from last year, with the biggest increases in Phoenix (22.3%), San Diego (21.6%) and Seattle (20.2%). Chicago (up 9.9%) had the smallest increase.
“the performance in April was really excellent.” Craig J. Lazzara, head of global index investment strategy at Standard & Poor’s Dow Jones Index, said, “We thought that part of the strength of the U.S. real estate market was due to people’s response to the COVID-19 epidemic, as potential buyers shifted from urban apartments to suburban homes. The April data are still in line with this assumption. ”
Low mortgage rates and rising demand for suburban homes have boomed the US real estate market for more than a year, and the scarcity of housing has also contributed to the surge in house prices. Sales of second-hand homes in the country fell for the fourth consecutive month in May.
However, house prices are expected to remain high. Builders see high-priced materials, supply shortages and a shortage of skilled workers as ongoing challenges in building new homes.
“the forces that have pushed house prices to new highs over the past year still exist and show little sign of abating.” “the number of homes is still at an all-time low, especially given the rising demand for housing,” Zillow Group economist Matthew Speakman said in a statement.
Hope, deputy chief economist at CoreLogic, said potential buyers waiting for prices to cool are likely to stay on the sidelines for quite a long time.
“Mortgage interest rates are still 50% lower than in 2005, which was the last peak of housing price growth, which reduces the ratio of mortgage payments to household monthly income today,” she said. ” “continued huge demand is likely to continue to put pressure on prices, which are likely to maintain double-digit growth rates for the rest of 2021.”