House prices in 20 U.S. cities soared by 14.9% in April, reaching a new high since November 2005 – crazier than before the 2008 financial crisis. But this time it’s not the same as it was back then.
“Under the epidemic situation, the supply of houses is insufficient, the price of timber is soaring, and everyone goes to buy houses again. In March of this year, I made up my mind to buy a house. There were more than 40 offers for a house. The last house with a price of 400000 US dollars was sold at an increase of more than 20000 US dollars, which was 10% higher than the price at the end of last year. ” In the first quarter of this year, Han Xiaohan, a Chinese American who bought a house in New Jersey, sighed to the first financial reporter, “at that time, I felt a little distressed because I bought it too expensive. I didn’t expect that the transaction price of my next door neighbor’s house was even higher than the price I bought at that time.”
Zero interest rate, epidemic situation and inflation expectation have greatly stimulated the demand for house purchase in the United States.
“Even if the US Federal Reserve will shrink its balance sheet and raise interest rates in the future, which may lead to a fall in house prices, the mortgage interest rate is still low now, and the final total price may still be lower now.” Xiao Han said. A number of American real estate agents also told reporters that housing prices were high, but this “bubble” was quite different from that of 2008. Today, the US household savings rate has hit a record high. If you look at the balance sheet of the Federal Reserve, the answer may be self-evident: in June this year, the balance sheet of the Federal Reserve exceeded US $8 trillion, only US $0.87 trillion before QE was launched in 2008, and MBS accounted for 29.06% of the total balance sheet.
House grabbing in America
According to the latest data released at the end of June, the standard & Poor’s core logic case Shiller national house price index showed that house prices in the United States rose 14.6% year on year in April, higher than the 13.3% increase in March.
Among the larger cities covered by the index, the composite index of 10 cities increased by 14.4% year on year, up from 12.9% last month“ Since the end of last year, the U.S. real estate market has been booming. In the typical “seller’s market”, it’s normal for each apartment to get 20-40 bids. The price of basic second-hand houses needs to be increased by 8% – 10%. The expectation of rising interest rates has further stimulated people’s feelings of robbing houses. This situation has never happened in recent years. ” An American real estate agency staff told reporters.
In fact, Xiaohan’s “real estate war” is only an initial version. After all, New Jersey is not the most popular place for real estate. In Silicon Valley, where farmers gather, it’s not a problem that can be solved by adding twenty or thirty thousand dollars, but hundreds of thousands of dollars. Of course, the price of local houses is far more than 400000 dollars, but several times higher.