MetroIntelligence Economic Update by P. DUFFY
FHFA: House prices rose 1.5 percent in October and 10.2 percent year-on-year
House prices rose nationwide in October, up 1.5 percent from the previous month, and were up 10.2 percent from October 2019 to October 2020. For the nine census divisions, seasonally adjusted monthly house price changes from September 2020 to October 2020 ranged from +0.9 percent in the West North Central and East South Central divisions to +2.1 percent in the New England division. The 12-month changes ranged from +8.4 percent in the West South Central division to +12.5 percent in the Mountain and New England divisions.
Luxury home sales surged nearly 61 percent in late 2020
U.S. luxury home sales surged 60.7% year over year during the three months ending Nov. 30, the biggest jump since at least 2013, this data was first recorded by Redfin. That nearly quadrupled the growth we saw during the three months ending Feb. 29, before the coronavirus was declared a pandemic. It also far outpaced the 14.8% increase in sales of mid-priced homes and the 6.8% uptick in sales of affordable homes, as America’s “K-shaped” economic recovery put more money into the pockets of the country’s wealthiest homebuyers.
5 big questions for commercial real estate in 2021
Amid the raft of questions about what’s in store for 2021, there are five prominent ones that experts believe will play a big role in how the industry moves forward: What exactly does remote working mean for the office?, Will urbanization stall?, Where are investors setting their sights?, Will corporate sustainability efforts continue apace? and What role will technology play in real estate?
November durable goods orders rise for seventh consecutive month, but pace of growth slows
New orders for manufactured durable goods in November increased 0.9 percent. This increase, up seven consecutive months, followed a 1.8 percent October increase. Excluding transportation, new orders increased 0.4 percent. Excluding defense, new orders increased 0.7 percent. Shipments of manufactured durable goods in November, up six of the last seven months, increased 0.3 percent. This followed a 1.5 percent October increase.