An article in today's Wall Street Journal citing the Case-Shiller Index, stated that U.S. home prices are increasing at the fastest pace in 15 years! The price increases reflect how fiercely buyers are competing for the limited number of available listings.
According to the article, "A number of forces have merged to fuel the red hot housing market, including mortgage rates dropping below 3% in July for the first time ever. Millions of millennials in their 30s. New-home construction has lagged behind demand and homeowners are holding on to their houses longer. At the same time, the pandemic worsened the already severe shortage of homes for sale. Low interest rates prompted more homeowners to refinance and stay put instead of moving. Others delayed their moves due to concern about virus exposure."
The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 11.2% in the year that ended in January, the highest annual rate of price growth since February 2006. We're seeing similar pricing action in Mountain Brook, Homewood, Vestavia Hills, and Hoover. More on that in our next article on over-the-mountain home prices.Posted by Mike Wald on