Home price gains accelerate in September, S&P Case-Shiller Index says
Sales of new U.S. single-family homes unexpectedly fell in October following recent strong gains, but the overall housing market remains supported by lower mortgage rates.
After shrinking for much of this year, home price gains are now growing again.
On a national level, prices rose 3.2% annually in September, up from a 3.1% gain in August, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index. The 10-City Composite annual increase was 1.5%, unchanged from the previous month. The 20-City Composite rose 2.1% annually, up from 2.0% in August.
Of the 20 cities covered, Phoenix, Charlotte, North Carolina, and Tampa, Florida, saw the highest annual gains, with 6.0%, 4.6% and 4.5% annual gains, respectively. Ten of the 20 cities saw larger price increases in the year ended in September 2019 versus the year ended in August 2019.
Home prices are rising most in the Sun Belt, where housing is generally more affordable than in the East or West. San Francisco was the only city in the composites to show an annual decline in home prices (-0.7%).
“After a long period of decelerating price increases, it’s notable that in September both the national and 20-city composite indices rose at a higher rate than in August, while the 10-city index’s September rise matched its August performance,” Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices, wrote in a release. “It is, of course, too soon to say whether this month marks an end to the deceleration or is merely a pause in the longer-term trend.”
Other measures of home prices have shown multiple months of reacceleration in prices, and other factors in the housing market point to price strength going forward.
At least you could always cash out of your house and move somewhere cheaper, right? Perhaps, but as a new study from Zillow, the real estate website warns, perhaps not.
The problems are threefold: Demographics, geography and finances.
Looking at the first problem, there are a lot more baby boomers (defined as those born between 1946 and 1964) than those in the next generation, the so-called Generation X crowd (generally defined as those born between 1965 and 1985). At their peak, boomers totaled around 76 million, but Gen Xers around 50 million—only two-thirds as many.
Zillow says 34% of all owner-occupied homes in the U.S. are owned by people aged 60 or older. Millions of these homes will hit the market over the next two decades as senior boomers either die, move in with their children or to an assisted living facilities. The problem: There are too many homes to be absorbed by Gen Xers. This suggests that prices will have to fall.
First ….Happy Thanksgiving
Gobble gobble. Was wondering if Trump will badmouth turkey he pardons
Just took my spatchc0cked delegged bird off the smoker. Hit 175 in 2.5 hours at 285. Bird looks awesome. Skin even looks crisp enough to eat. Now in foil, towels and in a cooler for the trip down to Moorestown.
Happy TG all!
ExEssex
The Millenials will save the day. 😂
There are so many expensive houses in far away suburbs which have a constant decline in population, rising taxes, and housing prices dropping… GOOD LUCK.
Naive view of real estate. People dying leads to declining real estate values. Got it.
“Zillow says 34% of all owner-occupied homes in the U.S. are owned by people aged 60 or older. Millions of these homes will hit the market over the next two decades as senior boomers either die, move in with their children or to an assisted living facilities. The problem: There are too many homes to be absorbed by Gen Xers. This suggests that prices will have to fall.”
ExEssex your last post in the previous thread was interesting.
The answer is YES. What do you think Neo-liberal economics is. Is neo-feudalism by another name. It traces back to the old Austrian/Prussian aristocracy (the school of thought is known as Austrian economics/The Chicago School ,etc) that wanted to preserve control with hierarchies of capital control, because land based feudalism was out. They wore having a tough time because of a guy named Karl Marx. Otto Von Bismark created the first welfare state, why do you think it happened?
https://en.wikipedia.org/wiki/Otto_von_Bismarck
We have been here before, as Ms Bassey sings https://youtu.be/15QngStkp-E
ExEssex says:
November 25, 2019 at 9:45 pm
Sadly I Doubt the government could do any type of redistribution that would have any effect upon the vast chasm of income inequality. It’s as if we want to return to feudalism.
Something of interest is in Chile. The first place it has been fully tried out starting with Pinochet, with the riots going on, they have signs -” Neoliberalism born in Chile and dies in Chile.
Finally a big thing people over the UK started noticing with this Brexit thing. The goal of the power that be is a free trade agreement between the USA & UK. Hidden in it is the requirement of the National Health Service Trust (NHS) -UK’s national health coverage to be opened up to big US Pharma, as they would have to kill the drug purchasing approval process and would become like the US, a big wh0rehouse.
GenX to 1985? It has been 64 to 79 forever. I swear this sh&t about generations just gets made on the fly to support whatever dumb article someone wants to put forth. Here are truths, regardless of the generational nonsense:
-Boomers got gold pensions, high real estate gains and unprecedented stock market gains for their retirement.
-NYC and suburbs rode the great 401k fee scam for almost 40 years. Finance industry exploded around skimming billions in almost complete fee disclosure secrecy. Now, they can’t complete with informed investors and low rate environment. Middle to upper middle class jobs and HQs are constantly being eliminate and/or migrating to South and other low tax areas. NYC area is now resting on decades of wealth expansion but it will be slow and steady death. Wait until next recession hits.
-Gen X in NYC area mostly got f-ed with housing bubble. If high dual income household that can absorb loss, then might buy another home locally. Many taking hit and getting out. Those staying will be no real gain over time. Stock market bubble helping their wealth feelings and spending.
-Millenials are f-ed on every level. High housing, unstable careers, monstrous student loan debt and investing into highs
Absolutely need two high earners to survive in area or Bank of daddy. Most can’t afford sh$t and we are fooled by frivolous expensive avocado pics. They got a bag of nothing.
Largely agree with Bystander. Boomers (I’m one, just barely) have been coddled and catered-to, at the expense of later generations. Worst of all is gov’s role in allowing/supporting inflation of housing prices. I paid 80K for an investment condo on Palmer Square in Princeton in 1988 and 100K for my first home/condo a year or so later — all while making maybe 25K at my first job. That’s virtually impossible now. Watching my stepson and his girlfriend try to find a decent place to buy in north/central NJ is really frustrating. I hope, like me, Boomers are aware of their good fortune and are already thinking of ways to pass some of their wealth to those generations long before they kick the bucket.
Black Friday just tipped to online. Or retail just went to shit.
Anecdotally – everyone saying that stores were not crazy today.
Oh, yeee. More great results from the Boomer Locust Worldwide Destruction Tout 1945- Till Terminator Day.
https://widerimage.reuters.com/story/no-money-no-hope-s-koreas-dirt-spoons-turn-against-moon?utm_campaign=web-app-launch&utm_medium=banner&utm_source=rcom&utm_content=ros
For the boomers that still have parents, many are just trying to figure out how to avoid taking care of them. They want the trifecta of mom/dad kicking the bucket quicky, with little effort from the boomer (life is too short you know), and hopefully the mom/dad has the courtesy not to run through their money because the boomer has already spent the inheritance…….. boomers are sickening, only to be outdone by their narcissistic progeny……
SmallGovConservative says:
November 29, 2019 at 11:36 am
north/central NJ is really frustrating. I hope, like me, Boomers are aware of their good fortune and are already thinking of ways to pass some of their wealth to those generations long before they kick the bucket.
Newsweek ranked America’s best STEM High Schools across the nation and both Wayne Hills and Wayne Valley High Schools ranked in the top 7%.
https://www.tapinto.net/towns/wayne/sections/education/articles/wayne-high-schools-ranked-in-top-7-for-stem-learning
Agreed..
Bystander says:
November 29, 2019 at 10:41 am
GenX to 1985? It has been 64 to 79 forever.
Their true “f-Ed on every level” kicks in when they try to retire and there is no value in their pension or social security.
That entire post was good. Two thumbs up.
“-Millenials are f-ed on every level. High housing, unstable careers, monstrous student loan debt and investing into highs”
Bystander,
Had to drive through the back roads of west Chester and conn….nice out there.
Traffic is from hell if trying to work in the city. These jersey boys have it easy. That commute by car is a nightmare. That’s why I was taking these single car backroads over 95 or the meridian. Had to do it twice in a week recently.
If you have young kids, live in the city, and are looking to save a few bucks; go look at Wayne. Going to pay higher property taxes, but get a huge discount on your home price. If you have kids using the school system, the taxes are a stupid bargain. So getting a discounted home price at the expense of property taxes, which shouldn’t bother you as you have kids in the school system. Sell after the kids are no longer in school as you no longer benefit from the high taxes to support the school system.
Been a long time since I spammed this site with multiple posts. Your welcome!!
How bout Clifton high school soccer?! Undefeated season…winning it all in a very tough bracket. Been a long time since Clifton has been this dominant. Still the same equation of Latin midfield with Eastern European forwards and back line.
grim says:
November 29, 2019 at 2:55 pm
Black Friday just tipped to online. Or retail just went to shit.
From the NY Post:
Here are the people who actually showed up for retail’s big day
Shopping ’til you drop just isn’t the same from your couch.
Online retailers continued to swallow up more of the market from brick and mortar stores this Black Friday — but many Big Apple bargain-hunters still turned up in person to buy the old-fashioned way.
…
Unlike the in-store frenzies of yesteryear, consumers are increasingly choosing to forgo the fisticuffs and buy big online during the annual festival of discounts.
For the first time ever, the majority of US consumers this year said they planned to do their holiday shopping online rather than in physical stores, according to the PricewaterhouseCoopers’ annual Holiday Outlook.
From AFP:
‘Black Friday’ becoming a shadow of its former self in US
The US holiday shopping season officially opened with a deluge of “Black Friday” promotions but the frenzied crowds of the past have thinned out with the rise of e-commerce.
Companies in the retail, entertainment and tourism industries once again tried to entice shoppers after Thanksgiving with a bevy of offers on a day synonymous with American consumer culture and notorious “doorbuster” sales that start at the crack of dawn.
But US consumers aren’t buying Black Friday the way they once did.
Only 36 percent of US consumers plan to shop this year on Black Friday, down one percent from last year and a decline of 23 percent from 2015, according to a PricewaterhouseCoopers survey.
“Just a few years ago, Black Friday had the aura of a FOMO (fear of missing out) event,” PWC said. “Now it seems more symbolic than significant in the pantheon of retail holidays.”
I never understood Black Friday.
Always equated anyone that camped out or
Battled others for bargains as being incredibly
Stupid. Bargains are out there 24/7. Brick and Mortar Retail is dead IMHO.
Shopping ’til you drop just isn’t the same from your couch.
Thus, everyone looks disgustingly obese. Go out in public and admire the muffin tops.
No one in my family went Black Friday shopping (20 people), all middle to upper middle. Who the hell buys into the farce?
Dufus,
I have done both commutes. 5 years from Westfield by bus and train. The RVL was freaking disaster with delays waiting for Amtrak into Newark then problems switching trains to NYC. Getting by bus was no better with any slight accident near Lincoln causing hours of misery..plus people acted like rabid animals. Being 20 miles from NYC took one hour, at best. I am now 50 miles and it takes 1:15 to GCT via Metro North. Much less crowded, mostly more stable and more humane. CT roads due suck, probably biggest negative here. I try not to use them during week but CT keep it’s charm by not overexpanding. Also CT cop presence is like candyland compared to NJ. I hated that feeling like every level of policing was out to get you. Can’t remember last speed trap I saw here
Bystander,
Are you in Westchester? Dutchess? Also, I tend to agree with your generational breakdown above… generally speaking. :)
Never mind, just saw your last post. :)
Chi- re : “For the boomers that still have parents”
I have many Gen-X family, friends etc that won’t lift a finger. It makes me sad for sure, AT LEAST I HAVE CONSIDERED plans for family. The rest no say way no how, even the childless ones.
I was at a wedding recently with our some of our Irish/Italian family. The brides grandmother who is healthy does not want to move to South Carolina with her daughter (has few friends left in Westchester etc, she is 80). Her two sons won’t even entertain the idea of taking in mom, say it will upset their wives! Lol…..These guys both pay the bills too and there is a windfall if she sells the home etc.
I get traditionally the daughter takes care of the mom (just went to a funeral for a 92 yar old who lived with her daughter), but really today in nearly 2020 you won’t take in you mom even with a 1/2 million dollar windfall?
Bystander,
I like conn. The entire tri-state area is fine with me. I don’t see much difference between north jersey, west Chester/rockland, Long Island, and conn. Best area to live in the country, IMO. If you live in one of these locations, life is pretty good. Nothing is perfect, but these locations provide a lot of benefits.
She called the contest for Amazon’s second headquarters a “ridiculous parade, a beauty contest” in which communities nationwide offered up inducements while failing to make a cleareyed assessment of costs and benefits. With its capabilities, market sway and long-term strategy, she said, Amazon now conducts itself like a “nation-state.”
https://www.nytimes.com/2019/11/30/business/amazon-baltimore.html?smid=nytcore-ios-share
“Like independents making a comeback around the country, the Ivy sells books at full price, making its success all the more striking. Customers will pay $30 for a book they might get with a click for $20 online, in part because they don’t like the world they believe Amazon is building, said Emma Snyder, the shop’s owner.”
Black friday is useless, there are insane sales every single day anywhere on the web. I had to go out to physically buy a last minute birthday gift, and the amount of useless bullshit people filling their carts with is just sickening.