Overall 2018 is shaping up to be the hottest real estate market…ever.
In most of the country, housing prices continue to soar above their mid-2000 all-time-highs.
For example, according to S&P Core Logic, as of end-April 2018, Denver-area housing prices were 52% higher than their bubble-high (June 2007).
While extreme price appreciation is making news, real estate is a segmented market.
The top 5% of prices are appreciating at a much slower pace. According to LIV Sotheby’s, prices for homes over $1M have increased just 1-4% in the last four years.
The disparity has to do with supply and demand. Nationally, the greatest shortfall in housing inventory is in the “starter home” category – median price $178K.
Accounting for just over 50% of inventory, the high-end market isn’t nearly as constrained.
Weekly Update through July 20, 2018 The S&P 500 added 4bps, even as the Dow Jones gained 20bps, the Russell 2000 increased 58bps, the Nasdaq slid -7bps.
As for US bonds, they dropped -27bps.
Globally, the MSCI World Index gained 23bps and the Barclays Global Aggregate Bond Index lost -2bps.
The Euro Stoxx 50 gained 16bps in local-currency (Euro) and 46bps in USD. Meanwhile, the Topix added 86bps local-currency (Yen) and 1.54% in USD.
