Last month, the number of December home sales hit a record high for that month, as the boom in real estate simply continues. Last year, real estate prices went up $2.5 trillion in value, which is the most in a single year since 2005, according to a Zillow analysis.
Home prices nationally rose 12.9% from where they were a year ago in December, according to an Associated Press story today. Contract signings are a sign for future purchases to take place within 30-60 days, so today’s report suggests more sales are coming to take more homes off of the market.
The gains are expected to continue in 2021 “Builder confidence, perhaps in reaction to the boosted demand, hit record highs and more homes are being built as a result,” said Zillow economist Treh Manhertz.
Of course, the gains are being fueled by zero interest rates, which is making it easier for people to buy homes and attracting money into the real estate market for investment purposes. News4 AJAX did a segment on how the market is booming in northeast Florida.
Despite the rise in real estate prices there is blaring weakness in most of the US economy as fourth quarter GDP numbers released yesterday showed a big reduction in the growth rebound that took place in the third quarter and a continued decline in personnel incomes.