Tuesday, October 6, 2020
A new report from analytics firm CoreLogic on Home Values this morning showed the highest rise in two years for the month of August: +5.9% year over year, +1.0% in just the past month. Two big drivers appear to be the +8.6% year-over-year spike in entry-level home ownership (meaning Millennials are at last making the jump in meaningful numbers to real estate purchases), and the “mass exodus” from crowded cities like New York in favor of more space, following the initial impact of the coronavirus pandemic: suburban homes with big back yards.
Inventories were down in August 17% year over year, as home builders from entry-level specialists D.R. Horton DHI to luxury developers Toll Brothers TOL scramble to make land purchases and break new ground. This industry was affected by this past spring’s shutdown, as land-buying firms were not considered part of the “essential workers” allowed