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U.S. housing prices have skyrocketed, and nearly 90% of the regions have risen by double digits!Global housing prices are rising, but this place has launched “1 yuan purchase” and also free decoration fees

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U.S. housing prices are going crazy!

Affected by factors such as the Fed’s ultra-low interest rates and high government subsidies for the new crown epidemic, US housing prices have risen sharply recently. In 183 metropolitan areas in the United States, ninety-nine percent of housing prices are rising, representing a double-digit increase of nearly ninety percent.

At the same time, housing prices in countries around the world are also soaring, and housing prices in major countries in Europe, Asia-Pacific, and North America are all rising at an accelerated rate.

Image source: Photograph

U.S. housing prices have soared, with double-digit increases in nearly 90% of the regions

According to Xinhua News Agency, housing prices in the United States have risen sharply recently, and housing prices in some areas have repeatedly hit new highs. Analysts believe that the main reason for the current round of housing price increases in the United States is that demand exceeds supply. The negative effects of falling housing affordability and increasing polarization between the rich and the poor are gradually emerging.

According to the latest statistics from the National Association of Realtors, April The median price of existing home sales in the United States rose 19.1% year-on-year.Among the 183 metropolitan areas monitored by it, 99% of the regional housing prices rose in the first quarter of this year, and 89% of the regional housing prices rose by double-digits. .

In addition, the S&P/Cass Schiller House Price Index, an important indicator of the price level of the US real estate market, rose 13.2% year-on-year in March, further accelerating from 12% in February, marking the largest increase since December 2005.

According to Hexunnews,The past year was the hottest year for residential sales in the United States in the past 14 years.58% of the houses were sold within two weeks of listing, and 45% of the houses were sold at a price higher than the listing price, both breaking records.

In April this year, the median sales price of existing homes in the United States increased 16.2% year-on-year to 319,200 US dollars, or 2.03 million yuan, the highest since 1989; the median sales price of second-hand houses increased 19.1% year-on-year to 341,600 U.S. dollars, about 2.18 million yuan, its annual increase and median price both hit record highs.

In the past year, housing prices in all 50 states and the District of Columbia have risen. The top 5 states with the highest annual value added are: Idaho 23.7%; Utah 19.2%; Arizona 17.4%; New Hampshire 16.2%; Connecticut 15.9%.

High subsidies “ignite” the enthusiasm for buying houses, and negative effects have emerged

Economists generally believe that the Fed’s ultra-low interest rates, high government subsidies for the new crown epidemic, maintenance of social distancing and other epidemic prevention and control measures, as well as the increase in housing purchase age groups, have increased the demand for home purchases. At the same time, housing inventory has fallen and new homes have been under construction. The resulting supply gap is the main driver of the recent surge in US housing prices.

According to Xinhua News Agency, since last year, the Fed’s ultra-loose monetary policy has brought a lot of liquidity, and US mortgage interest rates have been kept at a low level. Yang Xiaojing, an associate professor in the Department of Marketing at the University of South Carolina in the United States, believes that low interest rates have increased the number of consumers who can afford the cost of buying a house loan. At the same time, consumers can afford houses with a higher total price, thereby boosting house prices.

The US government’s high subsidies further “ignite” people’s enthusiasm for buying houses . After the outbreak of the new crown epidemic, the US government introduced a series of large-scale economic relief measures. Among them, the issuance of unemployment benefits and family relief payments has significantly increased the personal income of US residents and boosted family spending including house purchases.

In addition, since the outbreak, anti-epidemic measures such as maintaining social distancing have led to an increase in demand for real estate in areas with low population densities. At the same time, the widespread use of home telecommuting has increased people’s demand for improved housing conditions, which has led to an increase in the demand for housing purchases.

The negative impact of rising housing prices in the United States is gradually showing. The National Association of Realtors in the United States said that with the rising housing costs, many families have intensified the pressure to buy houses, especially first-time home buyers. There are data showing, About 60% of households in the U.S. have been unable to pay for a new house that is at the current median price .

Yang Xiaojing believes that rising housing prices in the United States have further aggravated the polarization between the rich and the poor. Low-income people are increasingly unable to afford the increasingly expensive housing prices. At the same time, housing rents are also “rising,” increasing their daily expenses. In the short term, more people will rely on government subsidies. On the other hand, high-income people can enjoy the dividends brought by more real estate appreciation.

According to financial news from Phoenix.com, Nobel laureate in economics, Robert Shiller (Robert Shiller) is worried that the hotly-traded property market, stock market and “currency circle” in the US market are forming bubbles. Schiller believes that investors have a “Wild West” mentality in these areas.

Schiller pointed out that “the real estate market has a great upward momentum, and prices may not fall within a year.” He believes that the current real estate market environment is similar to 2003, which is 5 years before the real estate market crashed in 2008.

Regarding the future trend of U.S. housing prices, Bank of America stated in a research report that the supply and demand of the U.S. housing market is seriously imbalanced, and the gradual normalization will be a long process. It is expected that high housing prices will continue for a period of time.

Economists believe that how the Fed’s monetary policy will evolve in the future will become an important variable affecting the trend of the US real estate market.

Global housing prices continue to accelerate, with housing prices rising in nearly 90% of countries

It is not only the United States that has seen soaring housing prices.

According to a report from Chinanews.com, Asia’s largest real estate technology company Juwai IQI Group released the “Global House Price Report for the First Quarter of 2021” on the 2nd, showing that the global housing market boomed in the first quarter, with prices soaring in Europe, the United States, Canada, and some countries and regions in the Asia-Pacific region. .

This report shows that in the first quarter of this year, housing prices in many countries in Europe, Asia-Pacific, and North America have been accelerating and have reached an “astounding level”, and this “level of prosperity is completely unprecedented.” The report believes that low interest rates and monetary easing are the main reasons for the rise in global housing prices.

The report shows that among the 57 housing markets for which housing statistics have been published globally, the actual housing prices (that is, prices adjusted for inflation) have risen in 43 markets. From the perspective of nominal housing prices, Of 57 countries, 50 countries have seen nominal housing prices rise, and only 7 countries have seen housing prices fall, accounting for nearly 90% .

Among European countries, Montenegro, Slovakia, Turkey, Sweden and Germany all experienced strong house price increases.

According to the China Youth Daily, ING Groep analyzed that the Netherlands is facing a shortage of housing supply. Last year, Dutch house prices rose by 7.8%, and in 2019 they rose by 6.9%. House prices in Austria, Germany and France have also maintained steady growth.

House prices in various countries are rising, and the houses here are not only “1 yuan purchase” but also free decoration

However, when global housing prices are skyrocketing, some places tell the story of “buying a house for 1 yuan”.

According to a CCTV financial report, in Croatia, due to the impact of urbanization, the population of some small villages and towns continues to decrease. In order to attract new residents, some places have launched houses priced at only 1 Kuna (about 1 yuan) , These ultra-low-priced houses have attracted the attention of global buyers.

The conditions set by the local government for buyers are: they must be younger than 40 years old, have a stable income, and buyers must promise to live in the town for at least 15 years in the future. For eligible buyers, the town government can provide a subsidy of 25,000 kuna (approximately RMB 25,000) for the renovation of each house. Up to now, 17 of the first batch of 19 properties launched by the town government have been sold.

A local government official said: “We have received a lot of inquiries from all over the world, but we mainly focus on potential buyers around us. This measure has achieved remarkable results.”

These ultra-low-cost houses are old houses that have been vacant for many years or unfinished houses. Some houses do not even have doors and windows.

The analysis believes that in recent years, the process of urbanization has led to a steady decline in population and economic shrinkage in some remote or poor areas of Europe. In order to avoid becoming completely empty, many small towns use “low-priced housing” as their selling point to attract foreign populations to join. Apart from Croatia, it is not uncommon to sell houses for one euro in countries such as France and Italy.

Edit| Duan Lian Du Bo

Proofreading| He Xiaotao

Cover image source: Photograph.com

Daily Economic News Comprehensive Xinhua News Agency, Hexun.com, Phoenix Finance, China News Network, CCTV Finance, China Youth Daily,Public information, etc.

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