![]() ![]() The rebound was somewhat prompted by winter storms curbing construction activity in February. Permits for new residential construction also increased, albeit at a slower rate. The leap places the annual rate of starts at its highest since 2006 and serves as the largest month-over-month gain since 1990. Housing starts surged nearly 20% in March as contractors rushed to address the lack of new homes for sale. ![]() (4) Home startsĪs gauges of market demand soar to 15-year highs, so have measures of upcoming supply. But with supply still under pressure and CoreLogic's Tuesday report showing prices broadly climbing higher last month, the phenomenon might linger for some time. To be sure, monthly sales data is volatile and the premium for new homes could reemerge in April data. The dynamic signals Americans are prioritizing buying any available home instead of hunting down a new unit. For the first time since 2005, Americans spent more on previously owned single-family homes than on new construction, according to March housing data from the Census Bureau and the National Association of Realtors. previously owned homesĭigging deeper into home sales reveals an unusual phenomenon unseen since the previous boom. Prices rose the most in Phoenix, San Diego, and Seattle, according to S&P. All 20 cities saw home prices climb, and 19 cities saw year-over-year price growth accelerate from January to February. Home prices in metropolitan areas gained 12% year-over-year in February, according to the S&P CoreLogic Case-Shiller Home Price Index, the headline index of US home prices for more than three decades. The reading signals the strongest price growth since 2006 and edged slightly higher from the prior annual gain of 11.2%. Separately, a more city-focused measure of home-price inflation notched a similar reading last week. "With prospective buyers continuing to be motivated by historically low mortgage rates, we anticipate sustained demand in the summer and early fall," he said. Still, year-over-year price growth should reach 3.5% as lingering demand keeps the rally alive, Frank Martell, the president and CEO of CoreLogic, said in a statement. A persistent wearing-away of home affordability will likely curtail some purchases, and accelerated construction will shore up supply in the months ahead, CoreLogic said. The financial analytics firm sees that momentum cooling over the next year. On a month-over-month basis, prices rose 2% from their February levels. That marks an acceleration from the February rate of 10.4% and the fastest rate of price growth since March 2006. The headline price gauge for housing-data authority CoreLogic soared 11.3% year-over-year in March, according to a Tuesday report. Possibly the most basic indicator of just how much demand has outstripped supply is nationwide price indexes. "I don't see the kind of financial stability concerns that really do reside around the housing sector," Federal Reserve Chair Jerome Powell said last month. "We don't see bad loans and unsustainable prices and that kind of thing."īut just because the market looks different on a macro level doesn't mean there aren't strong similarities to the period just before the bubble burst. Here are five housing-market signals flashing the same signs seen about 15 years ago. ![]() Experts have been quick to note that, while some similarities exist, the latest price surge has more to do with a lack of inventory than dubious lending standards. The boom's frenetic nature has led many to compare the current market with that seen just before the infamous 2008 crash. That imbalance has since pushed selling prices skyhigh. Chronic underbuilding after the financial crisis left contractors struggling to meet the new demand with adequate supply. Americans snapped up nearly all the available supply of new and previously owned homes amid huge population shifts from cities to suburbs. Low mortgage rates and massive demand have powered a supercharged rally for US housing over the last year. Housing-market monitors keep repeating the phrase "since 2005," except when it's "since 2006." That's worrying - both superlatives refer back to the peak of a historic real-estate bubble. Account icon An icon in the shape of a person's head and shoulders. ![]()
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