“Local realtor/MLS data suggest that the median existing single-family home sales price last month was up by about 15% from last November. While some of the surge in median sales prices may be related to the mix of home sales, there seems little doubt that record low mortgage rates, a drop in the number of existing SF homeowners listing their homes, a sizable pandemic-related in demand toward single-family homes (including a surge in second-home purchases) and away from multifamily rentals (especially in high-density cities), and historically ‘easy’ mortgage lending conditions from the standpoint of allowable debt-to-income ratios have combined to produce a seldom-seen explosion in single-family home prices (especially in a low-inflation environment).”
(Lawler: Early Read on Existing Home Sales in November dated 12/18/2020 by Bill McBride via Calculated Risk)
Full article can be read here: https://www.calculatedriskblog.com/2020/12/lawler-early-read-on-existing-home.html