Real estate prices are about to drop 10%

The wholesale disruption of COVID-19 is taking a toll on the real estate market. A new survey suggests that offices will remain under capacity for months, retail and hospitality will continue to struggle, and, despite some increases in single-family home values, real estate across the board will see its value fall around 10% next year.

These are some of the main findings of “Emerging Trends in Real Estate 2021,” a new report from the Urban Land Institute and PwC. Based on a survey of more than 1,600 leading real estate industry experts and interviews with more than 1,300, this 42nd annual edition of the report finds that the pandemic is going to continue to drive major changes in the way property is bought, sold, and used. Overall, the impact of the pandemic is broadly, but not universally, negative, the report notes.

“The real problems are isolated at this point to

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New Home Prices in July Out Pace 2019

Home prices in newly built communities are outpacing pricing trends from 2019. According to data from Zonda, 56% of new home communities raised prices in July, while only 39% of new home communities increased pricing in July 2019. Phoenix, Denver, Las Vegas, Sacramento and Riverside are epicenters for new home construction an increased pricing.

“The price increases, especially in the new home market come from the puzzle that the industry was facing pre-pandemic, which is that there are no homes for sale. That has only gotten worse during the pandemic,” Ali Wolf, chief economist at Zonda, tells GlobeSt.com. “If a buyer is looking to take advantage of rates today, there are very few options, especially if they are selective about location.”

The pandemic has actually helped to fuel home sales. It has given many people flexibility to move further away from their jobs, but the pandemic has also

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Shenzhen’s unaffordable home prices could hurt Beijing’s plan to turn the Greater Bay Area tech hub into model city



a view of a city: Shenzhen has been granted autonomy by Beijing on a wide range of local policies, from land use to hiring global talent. Photo: Xinhua


Shenzhen has been granted autonomy by Beijing on a wide range of local policies, from land use to hiring global talent. Photo: Xinhua

Beijing’s blueprint to develop Shenzhen and showcase it a centrepiece of its economic reform and attract talent could hit a major stumbling block in the form of unaffordable housing prices, say analysts.

As part of a five-year plan to build the city into a “core engine” of reform by 2025, Shenzhen has been granted greater autonomy in using rural land for development purposes. The move, which will ease land supply crunch, is aimed at reining in escalating home prices and making the city more affordable to live. It was speculated that Beijing would give Shenzhen “additional land” by allowing it to absorb some neighbouring towns into its territory, but the central government did not do so.

“Home prices take up a major chunk of the cost of

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San Antonio-area home sales and prices skyrocket as inventory tightens

Home sales and prices in the San Antonio area soared in September amid pent-up demand, low interest rates and a tight supply of available homes.

Buyers in Bexar and surrounding counties closed on 3,623 homes last month, up about 32 percent from September 2019, the San Antonio Board of Realtors reported Tuesday. Sales year-to-date are up about 8 percent compared with the same period in 2019.

The median price rose about 11 percent to $261,200.

“The significant growth in sales compared to last year shows the housing sector as a possible factor to move the economy forward,” said Kim Bragman, SABOR’s 2020 board chairman. “We are hopeful to see a positive growth of sales for the remainder of the year.”

On ExpressNews.com: Skyline: More details about plans for $560 million mixed-use development near Pearl

Around 68 percent of the homes sold in September were priced between $200,000 and $499,999, compared

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Australian Home Prices May Rebound on Low Rates, Easy Credit

(Bloomberg) — Australian home prices may have bottomed out and could be set to rise through the end of the year on the back of lower interest rates and easier credit, according to Bloomberg Intelligence.



a house with trees in the background: Residential properties stand along a street in Brisbane, Australia, on Tuesday, May 7, 2019. Australian central bank chief Philip Lowe dashed expectations of an interest-rate cut, looking through recent weakness in inflation to hitch the policy outlook to a labor market that he says remains strong.


© Bloomberg
Residential properties stand along a street in Brisbane, Australia, on Tuesday, May 7, 2019. Australian central bank chief Philip Lowe dashed expectations of an interest-rate cut, looking through recent weakness in inflation to hitch the policy outlook to a labor market that he says remains strong.

Property prices have fallen just 3% since the Covid-19 crisis began, defying concern of a steeper slide. A plan to ease responsible-lending rules and mounting speculation for further loosening of monetary policy in coming months may unleash a wave of borrowing, Bloomberg Intelligence analyst Mohsen Crofts said in a report Wednesday.

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What Bloomberg Intelligence says:

Home prices may have reached a near-term bottom in most

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California home prices to grow more slowly next year, Realtors forecast, but sales may be stronger

Ultra-low mortgage rates and pent-up demand for single-family homes will offset continued economic uncertainty and a supply shortage in 2021, with the net result being a 3.3% increase in California home sales and a modest 1.3% increase in the median price next year versus 2020, according to a California Association of Realtors forecast published Tuesday.

With only a few months left to go, sales this year are expected to be

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U.S. used car and truck prices rise the most since 1969

WASHINGTON — U.S. consumer prices increased for a fourth straight month in September, with the cost of cars and trucks rising by the most since 1969, but inflation is slowing amid excess capacity in the economy as it gradually recovers from the COVID-19 recession.



a man in a police car parked in a parking lot


A 6.7% jump in the average prices of used cars and trucks again accounted for most of the increase in the CPI last month. That was the biggest gain since February 1969 and followed a 5.4% advance in August. The strong increases likely reflect a shortage of used motor vehicles amid an aversion to public transportation because of fears of contracting COVID-19.

New motor vehicle prices rose 0.3%. There were also increases in the costs of recreation. But prices for motor vehicle insurance, airline fares and apparel fell.

Though the benign report from the Labor Department on Tuesday will have no direct impact on

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California Home Prices Expected To Stagnate As Sales Slow In 2021

LOS ANGELES , CA — California home price increases and sales are expected to slow in 2021, but the Los Angeles-based California Association of Realtors doesn’t forecast widespread price drops.

Despite the economic uncertainty caused by the pandemic, California home sales are expected to climb a modest 3.3% next years, and home prices will edge up 1.3%, the California Association of Realtors forecasted Tuesday. Low mortgages rates and pent-up demand are credited with propping up the market despite the pandemic slow-down. CAR leaders expect interest rates to continue to fall.

“An extremely favorable lending environment and a strong interest in homeownership will continue to motivate financially eligible buyers to enter the market,” said CAR President Jeanne Radsick, a Realtor in Bakersfield. “While the economy is expected to improve and interest rates will stay near historical lows, housing supply constraints will continue to be an issue next year and may put

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Surge in Used Car Prices Keeps the CPI Positive

CPI Month-Over-Month Key Points

  • The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in September on a
     seasonally adjusted basis after rising 0.4 percent in August, according to the U.S. Bureau of Labor Statistics.
  • The index for used cars and trucks continued to rise sharply and accounted for most of the monthly increase in the seasonally adjusted all items index. The index for used cars and trucks rose 6.7 percent in September, its largest monthly increase since February 1969. 
  • The food index was unchanged, with an increase in 0.8 percent in September.

  • The energy index rose 0.8 percent in September as the index for natural gas increased 4.2 percent.

  • The index for all items less food and energy rose 0.2 percent in September after larger increases in July 


CPI and Core CPI Year-Over-Year 

CPI and Core CPI Year-Over-Year 2020-09

Year-Over-Year Key Details

  • Over the last 12 months, the all items index rose 1.4
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Used Vehicles Lift U.S. Consumer Prices, but Inflation Slowing | Investing News

WASHINGTON (Reuters) – U.S. consumer prices increased for a fourth straight month in September, with the cost of cars and trucks rising by the most since 1969, though inflation is slowing amid labor market slack as the economy gradually recovers from the COVID-19 recession.

While the benign report from the Labor Department on Tuesday will have no direct impact on monetary policy, it should allow the Federal Reserve to keep interest rates near zero for a while and continue with massive cash infusions as it nurses the economy back to health.

The U.S. central bank is now more concerned about the labor market and has embraced flexible average inflation targeting, which in theory could see policymakers tolerate price increases above its 2% target for a period of perhaps several years to offset years in which inflation was lodged below its goal.

At least 25.5 million people are on unemployment benefits.

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