The massive number of transitioning households on the move had a clear impact upon the price trajectory of all real estate markets. According to CoreLogic, on the low end of the spectrum was Washington, D.C., with an average home price increase of only 5.3% in October year-over-year.
Just note that Washington, D.C. was the one region that did not participate in the market crash of 2008, when the market seemed to crater.
One of the areas that did best was Florida, which saw a 24.4% surge in October year-over-year.
Not since the great crash of 2008 have we seen such sustained double-digit growth. But the areas that are showing the most strength appear to be certain Mountain states, which include Arizona with a 28.9% increase, Idaho with a 28.7% increase, Utah with a 24.5% increase, and Nevada with a 24.2% increase.
Those regions coming in on the lower end of the spectrum were the District of Columbia which increased 5.3%, North Dakota 8.0% increased, Alaska 8.4% increased, New York increased 8.4% and Louisiana increased 9.7%, respectively. A quick look at these markets might indicate that the shutdown of the Alaskan pipeline, and the high cost of living in New York, had an impact on these markets.
One of the obvious areas that did not appear in this research form CoreLogic is Washington state and Oregon, the bread baskets originally of the tech industry. In the case of these states, the work-from-home economy is allowing the tech jobs to be less geographic and more virtual.
The New Jersey Market
Home prices statewide were up 6.8% year-over-year in November. At the same time, the number of homes sold fell 10.4% and the number of homes for sale fell 19.8%.
Also California was not in either the higher spectrum or the lowest spectrum. The share of people who left California increased from roughly 16% in 2016 to 20% at the end of September 2021.
This last 12-month period of time, according to CoreLogic, is the highest growth recorded in the 45-year history of the HPI index. CoreLogic sees that the monthly price growth has slowed from its high point in April, which is most likely a positive sign that this market is finding its true north.
But clearly, much of the liquidity gains in the stock market is finding a home in the real estate market. According to another report by CoreLogic, the Q1 sales in 2021 totaled $750 billion on 1.91 million transactions. This historic market could move the needle of the total value in transactions for 2021 to over $2 trillion for the first time in history.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.