So why are home prices shooting up during this time?

[urbanredneck2]

I also couldnt find gutter downspouts.

[Bijou_Drains]

Here in NC supply of houses is 50% of normal but demand is about the same

[elfkin477]

@Fotheringay-Phipps

Most measures of economic hardship trotted out - including most notably the unemployment rate - ignore the effects of stimulus money. As to unemployment in particular, 69% of unemployed people are making more in unemployment benefits than they were in salary and benefits when at their jobs .

The extra $600 a week was discontinued over 5 weeks ago. There’s currently an extra $200 a week and another $100 a week in some states.

[doreen]

I’m not going to say house and apartment prices are dropping in NYC - but they are going up in places that are too far to commute on a daily basis yet still close enough to come in once in a while. A lot of people expect to be working from home long-term.

Plus I am probably not the only person in my situation- although my husband took a bit of a pay cut, our spending has dropped drastically since the pandemic. Much more than the pay cut - if we had been looking to buy now, we could have come up with at least an extra $10K toward the down payment , probably more.

[Mallard]

@wolfpup

The Canadian housing market is often different from that in the US, but the market here in Ontario is also very hot, as indeed it has been for years. I’m not sure I really understand why. You’d think the COVID situation would make it difficult even to show a house, but they’re selling like hotcakes and prices are up significantly over last year. Someone pointed out that if it were not for restrictions on immigration due to COVID, it would be even hotter. Most immigration consists of skilled well-paid individuals who are among the most likely home buyers.

Here in Sask, the housing market has done a 180 degree turn from 2019. Last year you couldn’t hardly give a house away, this year it’s a sellers market. I think the covid may have changed some things in the market a person hadn’t really thought of before. We, as an example, spent some money on our house this spring/summer that wouldn’t have happened had we been able to take the two vacations we had planned and they would have cost a few bucks.

Some dealerships have practically sold out of new cars so I suspect you’re paying close to sticker price right now even if you find one you like.

[Machine_Elf]

@urbanredneck2

I also couldnt find gutter downspouts.

You can get them on Amazon, but they’re a little pricey and it takes a week or two.

[Fotheringay-Phipps]

The extra $600 a week was discontinued over 5 weeks ago. There’s currently an extra $200 a week and another $100 a week in some states.

I thought it was $300. But no big deal.

What we’re discussing here is the impact of unemployment on housing prices. 5 weeks is a short time to influence housing prices considering the lag from when they’re being measured, and perhaps more to the point, unemployment has continued to drop since pandemic heights, and in August - right when the $600 was scaled down - the rate dropped 1.8% to 8.4%. 8.4% is on the high side but not outrageously so, and when cushioned by even an extra $300 offset the impact on RE prices is even further ameliorated.

[PoppaSan]

Could the lower volume of houses available reflect that people that have jobs aren’t changing jobs until “things” settle out? (election, Covid, employment) IOW less churn in the resale market. Are people swapping jobs as often as say 12-18 months ago? Do people have more assets available to flip houses? I know a few younger relatives that had trouble getting into a house because they were always too slow by needing a mortgage or outbid by home flippers for the places they could afford.

[bobsmom101]

I’m having some landscaping done & the contractor is having trouble sourcing fence boards and cement.

[asahi]

Simplest explanation is that those who were in the housing market before the economic slowdown are still in the market for property, so the economic downturn hasn’t impacted them yet. By contrast, the damage has been brutal on people who were already relying on unstable jobs. Over time, the pressure will build on those who have been unaffected to date. Inequality eventually drags down others above the lowest rungs.

[wolfpup]

Here’s an article that quantifies some of these impressions with respect to the housing market in Canada. In Ontario, prices are up 23% over last year and across the country August was the busiest month on record for sales volume.

Canada's housing market remains on fire during pandemic, with average prices...

[Jackmannii]

Anecdote: We put our house on the market late last month, had several showings and one offer the day it listed, and accepted the offer two days later (a second offer was for less). Supposedly supply was down in the area and demand up.

Just closed today, and what a relief it is. We put in a lot of work getting the place into top shape.

[SanVito]

@urbanredneck2

So questions;

1. What are you seeing in real estate in your area?
2. How can you explain it with the current economic climate?

In the UK, the market is also currently booming. As far as I’ve heard, there’s a few reasons:

1. People who would have moved during the lockdown put those plans on hold and now everyone is back on it
2. Lockdown has made many people seriously reassess what they need or want from their homes - more outside space, less desire to be close to work, more need for home office space. People are flooding to the countryside.
3. The Government announced a pause in stamp duty until March 2021 (property tax you pay when you buy a house) to stimulate the market post-lockdown, so people are rushing to buy before it is reintroduced.