U.S. Market For New Homes Surges To Highest Level Since Bubble

The market for new homes in the U.S. continued to surge in September 2020, with the trailing twelve-month market cap reaching levels not seen since the days of the first housing bubble.

Our initial estimate of the trailing twelve-month average of the market capitalization of new homes sold throughout the U.S. in September 2020 is $26.87 billion. In nominal terms, only the period between July 2004 and June 2006 saw higher value for the market cap of new homes sold in the U.S.

The story is similar after adjusting for inflation, although here the first bubble period with higher national new home market caps stretches between December 2002 and April 2007.

Much of today’s demand is being fueled by American families seeking to escape corrupt cities that permitted sustained breakdowns in public order during the summer of 2020, sparking sharply increased demand in the U.S. market for new homes. That

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As South Florida’s housing market booms, signs of a slowdown have agents worried about a bursting bubble

The housing market in South Florida has been booming for much of 2020 — sparked by low interest rates, high demand and low inventory — but real estate experts say they consider the trend a bubble that probably won’t last.



a bridge over a body of water surrounded by trees: Eight months in to the pandemic and the housing market in Broward County has been booming for those selling single family homes.


© Carline Jean / Sun Sentinel/South Florida Sun Sentinel/TNS
Eight months in to the pandemic and the housing market in Broward County has been booming for those selling single family homes.

Single-family homes have been spinning on and off the market at a fast pace, with many sellers getting offers above asking price from buyers who are taking advantage of historically low interest rates, real estate agents say.

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In Broward County, single-family home sales in September were 24.9 percent higher than September 2019, and the median sale price rose 15.6 percent to $425,000, according to the Broward, Palm Beaches & St. Lucie Association of Realtors.

Outside of Broward

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Buyers and sellers alike seemed to share the belief that in the face of an all but guaranteed second wave, the time was now.

All the while, the condo market was showing signs of distress.

In response to widespread job losses, particularly in the hospitality and service sector, university classes moving online, and the short-term rental market being decimated by the abrupt loss of tourism, the rental market was flooded with vacant downtown condos.

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It wouldn’t be long, analysts predicted, until investors, faced with uncertain returns, started dumping their units.

By the time September rolled around and the original mortgage deferral programs ended, the condo market surged with new listings — a 215% increase over the same month last year.

For the first time in a very long time, the term “buyer’s market” was

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