Strong demand for new homes signals U.S. economic strength, economists say



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Sales of newly built single-family homes came in at an annual rate of 999,000 in October, the government said Wednesday, just a tick below the September rate, but a whopping 41.5% increase from the same month last year, highlighting housing’s role as a bulwark for the U.S. economy. “Today’s report from the Census Bureau suggested that demand for new homes in October continued to be strong,” Doug Duncan, chief economist at Fannie Mae, said in an email. “The monthly sales pace is now reported to have been essentially flat for the three months at an elevated level of about 1 million annualized units, a rate not seen since 2006.” Michelle Mayer, U.S. economist at Bank of America said in a research note that housing broadly

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Another record low mortgage rate just caused mortgage demand to jump

Mortgage interest rates have set record lows more than a dozen times this year, and last week there was yet another. That caused mortgage application volume to increase 3.9% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

Refinance applications led the way, climbing 5% for the week to the highest pace since last April. Volume was 79% higher than the same week one year ago. The refinance share of mortgage activity increased to 71.1% of total applications from 69.8% the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to a survey low of 2.92% from 2.99%, with points falling to 0.35 from 0.37 (including the origination fee) for loans with a 20% down payment.

“Weekly mortgage rate volatility has emerged again, as markets respond to fiscal policy uncertainty and a resurgence in Covid-19

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Condos Are Selling for a Record 17% Discount to Single-Family Homes as the Coronavirus Fuels Demand for Space

SEATTLE, Nov. 25, 2020 /PRNewswire/ — (NASDAQ: RDFN) — The typical single-family home that sold in the U.S. this year was purchased for an average of 17.3% more ($58,000) than the typical condo, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That’s up from 15.4% last year and represents the largest premium since at least 2013, when Redfin began recording this data.

The U.S. housing market has been on fire this year, with record-low mortgage rates and remote work prompting scores of Americans to relocate. But the condo market has missed out on much of the gains as homebuyers have left dense cities in search of more space and privacy—AKA single-family homes—during the coronavirus pandemic.

The median sale price of single-family homes surged 15.5% year over year in October, outpacing the condo market’s 9.9% growth. Condos are also taking longer to sell—the

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Home Prices Gain Most on Record as Low Rates Drive Demand

(Bloomberg) — Home prices surged the most on the record in the third quarter, according to a report Tuesday from the Federal Housing Finance Agency.



a dog sitting on a chair in front of a window: A worker at a home under construction in Dublin, Ohio.


© Photographer: Bloomberg/Bloomberg
A worker at a home under construction in Dublin, Ohio.

With record-low mortgage rates fueling demand for housing, prices jumped 3.1% compared to the prior quarter. That was the biggest gain in records dating to 1991, according to FHFA.

Compared to 2019, prices were up 7.8% in the three months through September, the biggest jump since 2006.

The housing market has been booming during the pandemic in the U.S., with cheaper borrowing costs and the desire for more space to spread out fueling a surge in purchases.

Prices for homes have soared across the U.S. despite the economic uncertainty from Covid-19. The gains have been driven in part by low inventory of houses for sales.

Video: The real turning point for markets

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Developers target suburbs as condo demand in downtown Toronto falters amid pandemic

The condos and office towers in the city of Mississauga are seen in the distance with the town of Milton, Ont. in the foreground on Oct. 15, 2019.

Fred Lum/the Globe and Mail

Toronto suburbs are experiencing a boom in condo project launches and preconstruction sales, as the pandemic’s work-from-home trend entices homebuyers to look outside the city.

Suburban condo projects accounted for 65 per cent of all launches in the Toronto region in the third quarter of this year, according to the latest data from industry research group Urbanation Inc.

This is not the first time suburban condo development has surpassed the city’s but marks the widest margin on record. As well, sales of preconstruction condos more than doubled in the suburbs compared with the third quarter of last year, while sales dropped 16 per cent in the city of Toronto over the same time period.

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Demand for Second Homes Surges 100% Year Over Year in October

The MarketWatch News Department was not involved in the creation of this content.


SEATTLE, Nov. 19, 2020 /PRNewswire via COMTEX/ —
SEATTLE, Nov. 19, 2020 /PRNewswire/ — (NASDAQ: RDFN) — Sales of vacation homes are soaring, even as millions of Americans grapple with financial devastation triggered by the coronavirus pandemic. In October, demand for second homes skyrocketed 100% from a year earlier—the fourth triple-digit increase in the last five months, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That outpaced the 50% increase in demand for primary homes.

For its report, Redfin analyzed mortgage-rate lock data from real estate analytics firm Optimal Blue. A mortgage-rate lock is an agreement between a homebuyer and a lender that allows the homebuyer to lock in an interest rate on a mortgage for a certain period of time, offering protection against future interest-rate hikes. Homebuyers must

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Legal & General to Build Suburban Homes as Covid Fuels Demand

(Bloomberg) — Legal & General Group Plc has started a U.K. suburban rental housing unit to tap into a surge in demand for larger homes and green space as more people work from home during the pandemic.

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The asset manager plans to build about 1,000 family rental homes a year starting in 2024, according to a company statement on Tuesday. Output at that level would see Legal & General’s build-to-rent business closing in on the country’s top 10 homebuilders. The firm already has more than 5,000 homes in operation or development.

The transition to working from home during the Covid-19 outbreak has spurred city dwellers wanting more space to relocate to the suburbs, boosting demand for homes and driving up rental prices. Rents in outer London rose 3.3% last month, while in the city center they plunged by 14.9%, according to broker Hamptons International.

“There are more people

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UK house prices fall despite strong demand driven by second lockdown

A new house development under construction
The first six days of England’s lockdown saw demand bounce back to being 49% up on 2019, according to Rightmove. Photo: Getty

UK house price fell by 0.5% this month, despite the second lockdown driving strong demand as sellers rush to beat Stamp Duty deadline.

Property website, Rightmove (RMV.L) said that the average price of property coming to market this month was down by £1,505 ($1,980) compared to last month.

Despite the dip, asking prices are still 6.3% higher than a year ago. Across Britain, the average asking price for a home coming to market in November is £322,025.

The first six days of England’s lockdown saw demand bounce back to being 49% up on 2019, according to Rightmove.

Properties in the higher bands between £100,000 and £500,000 — in areas where buyers are set to make the biggest stamp duty savings as the March deadline approaches, saw strong demand

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High-End Single-Family Homes in High Demand in South Florida

Already an attractive refuge for wealthy out-of-towners, the lure of South Florida’s luxury real estate market has only gotten stronger since the coronavirus pandemic.

High-end single-family homes have found themselves in particularly high demand, with deals across Miami-Dade, Broward and Palm Beach counties jumping by double digits in the third quarter compared to last year, according to a report Thursday from the Miami Association of Realtors.


The growing demand for luxury homes in the region is stemming from a host of factors, the report said, including record-low interest rates, a prosperous stock market, an increasing number of homebuyers ditching tax-burdened northeastern states, and increasingly work-from-home and remote-learning policies

All have combined to “create a robust market for luxury single-family properties,” the association said.

In Palm Beach county, the number of luxury single-family homes—defined as those priced at $1 million and up—that changed hands in the third quarter soared 82.9% from

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Home Healthcare Market Share, Size, Top Companies, Demand, Opportunity, Business Strategies Forecast by 2026

The MarketWatch News Department was not involved in the creation of this content.

Nov 12, 2020 (Market Insight Reports) —
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With respect to the production aspect, the report encompasses details about the manufacturing of the product, gross margins of the firms manufacturing the product, and the product remuneration. In terms of the consumption, the

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