House prices have set new records in the United States and parts of Europe as a huge fiscal stimulus helps housing markets continue to recover from the effects of the coronavirus epidemic.
The average price of an existing home in the United States has risen by a record 23.6% year-on-year, reaching a new high of $ 350,300 last month, with growth in every region of the country. The National Realtors Association said this on Tuesday.
The housing market in Europe also continues to rise, despite the Covid-19 crisis. In the Netherlands, house prices rose 12.9 percent in May from a year earlier, the fastest growth since 2001.
Sales of residential real estate in both the United States and the Netherlands fell, even as prices continued to rise, suggesting that demand exceeded supply. The Dutch Land Registry reported 16166 residential property transactions in May, down 12.1% from the same period last year.
Sales of formerly owned homes in the United States fell 0.9 percent from April to May to a seasonally adjusted $ 5.8 million a year. The total inventory of 1.2 million US homes is 20.6 percent lower than in May 2020, according to the NAR, which increased by 7% compared to April.
Some economists said the drop in sales could indicate that the US housing market had reached a peak, the highest level since 2006 last year.
“The decline in sales աճ the growth in inventory means that the extreme pressure on prices must soon begin to subside,” said Ian Schefferson, chief economist at Pantheon Macroeconomics.
Others see further growth, boosting central bank policy. “Loose monetary conditions could push up asset prices even further, jeopardizing the final sharp correction,” said Adam Slater, an economist at Oxford Economics. “Neither this result nor persistently high inflation is an attractive prospect for central banks.”
Rising housing prices have caught the attention of US Federal Reserve officials, especially against the backdrop of $ 40 billion a month acquires Agent-backed securities that form part of its $ 120 billion bond-buying program.
Recently, Dallas Fed Chairman Robert Kaplan warned that prices were at a “historically high” level, prompting financial investors to buy large amounts of residential property. Blackstone, Private Equity Group, Tuesday agreed $ 6 billion deal for Home Partners of America, a single-family rental property operator with a portfolio of more than 17,000 homes.
“More and more single buyers are being pushed out of the market,” Kaplan said at an event at the Official Monetary Forum on Monday at the think tank. “At this stage we are questioning whether the housing market really needs the support of this Fed – $ 40 billion a month.”
Louis Ames Bullard, president of the St. Louis Fed Federation, said that at the same time, it may be time to consider making MBS purchases “retirement.”
The European Central Bank said report: This week, in the fourth quarter of last year, eurozone house prices rose 5.8 percent from a year earlier, the highest rate since mid-2007.
It says that almost a quarter of the total growth in house prices in the eurozone last year fell to Germany, France and the Netherlands.
Rising prices պակաս Lack of affordable housing has angered the big business owners of a number of European countries. Ireland: required A 10-month interest rate for anyone who buys 10 or more homes in 12 months to help financial investors stop buying large amounts of property.
Intended in Germany A merger of 18 billion euros The country’s largest homeowner, Vanovia’s rival Deutsche Wohnen, has been motivated by rent cuts and even calls for the nationalization of companies.
The issue of house prices has also sparked criticism of the ECB’s extremely low monetary policy. Its chairman, Christine Lagarde, was questioned in the European Parliament this week.
“Young people and middle-class families have to compete in the rat race with overpayments in the overheated housing market,” said Michael Hogevin, a Eurosceptic Dutch MEP. “This is one of the consequences of your generous money-making, low-interest policies, to keep weak eurozone countries afloat.”
In response, Lagarde said: “There are no strong signs of that [a] “The housing bubble of credit fuel in the euro area in general,” he said, but added that there were “vulnerabilities in residential real estate” in some countries, particularly in some cities.