Market Heats Up /Demand for Houses Skyrocket

[Caroline Davis]

Demand for houses continues to skyrocket, according to a report from Redfin CEO Glenn Kelman. Seasonally adjusted demand for houses during the week of June 1 through June 7 was 25% above pre-pandemic levels. Kelman said that bidding wars have caused listings to move quickly, and sales prices are up 3.1% year over year. The percentage of newly listed homes to accept an offer within 14 days increased from 42% in May to 47% in June. “Our abiding concern in May was about the number of homes for sale, but that’s improving too,” Kelman said. “After falling to 21% below last year’s level the week of May 25-31, new listings last week continued their recovery; last week’s new listings were 15% below last year’s level.”1

[Steve Morris]

"Hi, there are over 100 Million homes on forbearance .. how will this effect once they are out of forbearance after 6-12 month from pandemic date. I have feeling this will 2008 all over again."

I do comm RE, but it feels a little different since banks are still lending, just with tougher underwriting.  However, you're right, if unemployment makes a lot of defaults, it'll impact new loans adversely.

The only wild card is how much money Uncle Sugar wants to throw in and where.  I think giving it directly to people is hella lot better than giving it to banks or govt that both skim a lot.