Unexpectedly Intriguing!
October 27, 2020

The market for new homes in the U.S continued to surge in September 2020, with the trailing twelve month market cap reaching levels not seen since the days of the first housing bubble.

Our initial estimate of the trailing twelve month average of the market capitalization of new homes sold throughout the U.S. in September 2020 is $26.87 billion. In nominal terms, only the period between July 2004 and June 2006 saw higher value for the market cap of new homes sold in the U.S.

Trailing Twelve Month Average New Home Sales Market Capitalization, January 1976 - September 2020

The story is similar after adjusting for inflation, although here the first bubble period with higher national new home market caps stretches between December 2002 and April 2007.

Much of today's demand is being fueled by American families seeking to escape corrupt cities that permitted sustained breakdowns in public order during the summer of 2020, sparking sharply increased demand in the U.S. market for new homes. That demand has combined with the lowest mortgages rates on record, which enabled American households to afford significantly higher priced homes.

The result of this combination of factors has produced a surging market for new homes in the U.S. in 2020. That market is providing a tailwind for the nation's economy and its recovery from the worst of the coronavirus recession.

Labels: , ,

About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Stock Charts and News

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button

JavaScript

The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links

Useful Election Data
Charities We Support
Shopping Guides
Recommended Reading
Recently Shopped

Seeking Alpha Certified

Archives
Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.