Unless you’re not watching the news on TV, or aren’t reading any newspaper or online information, your head might be in the sand, if you don’t know that prices on homes have continued to increase quarter over quarter and year over year.
Even the jobs report today was absolutely astounding, whereby we hit an historic all-time high of over 1+million jobs created in June 2021!
This bodes well for the majority of markets for goods and services. Real Estate is also the beneficiary of all this superb news! Demand is still at a 50+ year high, interest rates have dipped below 3 percent the other week, as I was able to secure a 2.75 percent mortgage for a client through my mortgage person Derek Kam of Green River Capital, who is as sharp as a tack and as professional as they come when comparing his knowledge, expertise and client service skills!
The following charts and graphs provide a clear and concise picture of where prices were and where they are currently, with no end in sight. Builders would have to build a minimum of 2,000,000 homes per year to equal the current demand and future demand.
As it is, we need a minimum of 500,000 additional homes to try to cool off demand today. The average home cost rose to $63,300 in June. That’s nearly a $70,000 escalation in price compared to June in 2020!*
The number of homes actively listed for sale in the U.S. are down 43 percent in relation to 2020. Homes in 2019 were selling quite briskly in 38 days and in 2020 the existing homes were selling in 21 days and currently, it has been reduced to 17 days!
Here are the Sold Median Sales, Pending Sales Median Price, Sold Price Counts, Pending Sales Counts statistics from July 7, 2019 thru June 2021
It is very obvious that the market is steaming full speed ahead at least in Nassau County as well as Suffolk, Queens and upstate too.
City statistics are getting a bit better as people begin to move back into NYC and other major cities, but retail and office space is still in difficult times.
However, it surely appears that the economy in itself is coming back very strong and there are now less than 6,000,000 people unemployed down from 8,000,000+.
However, I am a bit weary on the inflation numbers because food and energy are not included in the statistics because they change so rapidly and are never part of the “core” inflation for goods and services and even health care. But it’s a bit complicated.
However, if you figure out that gas has gone up approximately $1.14 as per GasBuddy.com prices for gas locally from 2020 when I paid $1.97 per gallon when no one was driving.
Food has also gone up too. How about wood and the material costs to build homes has added $35,000 to the equation. Lastly new and used car prices have also gone up due to the shortage of computer chips. So, anyone that thinks inflation is 5+ percent, I got a great deal, I have a bridge I can sell you too!
Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. He has 40 years of experience in the Real Estate industry and has earned designations as a Graduate of the Realtor Institute (G.R.I.) and also as a Certified International Property Specialist (C.I.P.S). For a “FREE” 15 minute consultation, a value analysis of your home, or to answer any of your questions or concerns he can be reached by cell: (516) 647-4289 or by email: Phil@TurnKeyRealEstate.Comr