Wealthy Americans are virtually untouched by the COVID-19 chaos and have been on a home buying spree in the hottest housing market in 30 yrs.
Demand for million-dollar homes is growing faster than any other price Tier in the current housing boom.
In October, applications for mortgages larger than $766,000 jumped 59%, the biggest gainer for all segments measured by the Mortgage Bankers Association. By comparison, the increase for mortgages from $150,000 to $300,000 was 13%.
Shares of luxury builder Toll Brothers Inc. (NYSE:TOL) fell the most in a month Tuesday after the company beat estimates with a 68% rise in home orders for the 3 months through October. The stock was down 7.8% to 45.32 at the close Tuesday, the worst performance in an S&P index of homebuilders, which fell 2.5%. Toll’s shares had gained 25% on the yr,
Buyers with money have been rushing to buy large suburban homes, where they can live more comfortably in the era of social-distancing. That is benefited builders like Toll and Pulte, which markets properties with backyards and ample space for home offices and Zoom schoolrooms.
The US is experiencing the strongest housing market in 30 yrs, it is down to He attributed to ultra low borrowing costs, an undersupply of new and previously owned homes and a renewed appreciation for the home as a sanctuary.
The work-from-home phenom is also enabling more buyers to live where they want to live.
Have a healthy day, Keep the Faith!