Google reported last week that the search “When is the housing market going to crash?” had spiked 2,450% in the past month. Before you think the sky is falling let’s look at the current market and why prices have jumped so much and why I think things in real estate are looking good. If you have 7 minutes to spare watch the video below where I look at CPI, the Savings Rate, Interest Rates, Home Prices, and the vaccine roll out.
KEY MARKET HIGHLIGHTS
- New residential listings increased 40% from February 2021.
- Pending sales increased 52% from February 2021.
- Closed sales increased 29% from February 2021
The average sale price has increased 19% from $466,000 to $554,300 from March of 2020. In the same comparison, the median sale price has increased 15% from $425,000 to $488,000.
After moving up for seven consecutive weeks, mortgage rates have dropped due to the recent, modest decline of U.S. Treasury yields. As the economy recovers, it should experience a strong rebound in the labor market. Combined, these positive signals will continue to bolster purchase demand. The drop in rates creates yet another opportunity for those who have not refinanced to take a look at the possibility.
Consumer prices rise more than expected, pushed by 9.1% jump in gasoline.
- The consumer price index rose 0.6% in March from the previous month and 2.6% from a year ago, according to the Department of Labor.
- That compares to Dow Jones estimates of 0.5% and 2.5% respectively.
- A surge in gasoline prices accounted for about half the gain amid signs of an accelerating economic recovery.