US house prices rise by the most since 1991 as US mortgage lenders record their biggest quarter in two decades
The median price for previously owned homes has hit a new record at US$313,000, up +16% from a year ago, the US National Association of Realtors said Thursday. There are fewer homes for sale in the US today than ever recorded in data going back nearly 40 years. That’s a big part of what’s driving up home prices much faster than incomes, and making homeownership less affordable for more and more Americans.
- The median price for a single-family home in the US rose +12% in the third quarter of 2020, according to the National Association of Realtors.
- Bloomberg reported that this +12% jump is the highest year-over-year increase since 2013.
- Low-mortgage rates have fueled 2020’s powerful housing rally. But as home prices significantly outpace median family income growth, more Americans are pushed out of the housing market and forced to delay homeownership.
- The proportion of first-time buyers dropped to -31%, the lowest share in over 30 years.
Every single metro area tracked by the organization saw home prices increase from a year ago, and 65% of areas witnessed double-digit price growth.
In October, the inventory of existing single-family homes for sale dropped to 2.4 months’ worth — the lowest since records began in 1982, the NAR said. Housing inventory shortages have pushed national home prices considerably higher.
“We are simply facing a housing shortage, a major housing shortage. We need to build more homes. Supply is critical in the current environment.”
— Lawrence Yun, the chief economist at the National Association of Realtors
For the week ending November 13, 2020 the price of benchmark softwood lumber commodity item Western S-P-F KD 2×4 #2&Btr reversed recent drops, to climb +$10, or +2%, to US$590 mfbm, said Madison’s Lumber Reporter. This week’s price is -$370, or -39%, less than it was one month ago. Compared to one year ago, this price is up +$194, or +49%.
Last month the average property sold in just 21 days, an all-time record. Dan Borowy, a realtor for Redfin, said he’s never seen anything like this. “I’m selling every listing within three days. Buyers are willing to pay US$50,000 over listing price.”