Housing Prices Soar 🏡

Housing Prices Soar

Are you looking to take advantage of record-low mortgage rates to buy a house? If so, you’re not alone — homes are in high demand. Bidding wars erupted in marketplaces across the country due to the coronavirus pandemic, which exacerbated an already scarce supply. Record-low mortgage rates merely contributed to the purchasing frenzy which sent housing prices through the roof, no pun intended. As prices continue to rise, homeowners are becoming increasingly wealthy.

According to CoreLogic, a leading provider of financial data, homeowners saw their equity rise by 20% in the first quarter compared to a year ago. This equates to a total gain of about $2 trillion — the average gain per borrower was $33,400. Of course, the huge gain is due to rising housing prices, which increased by nearly 11% in March, according to CoreLogic.

Because purchasers have already struck an affordability ceiling, home values are projected to drop in the second half of 2021. Sales have slowed, which usually means price reductions. However, home prices are unlikely to crash since there is still substantial demand for homes. Buyers are expected to return once prices start to stabilize.

If you’re wondering if this could play out like the 2007-2008 subprime mortgage crisis, I wouldn’t be too worried because today’s mortgage lending is significantly stricter. Additionally, only the most creditworthy borrowers are currently being lent to by banks — no more NINJA (no income, no job, and no assets) loans.

It’ll be interesting to see where housing demand is by the end of the year.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
OPEC’s Decision 🛢
1 December, 2023

OPEC leaders just hosted an important late-November meeting that may signal a change in strategy.

Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.