Home Prices Surge at Fastest Pace in Six Years

The GameStop Saga continues. Today, shares of the videogame company are up above $86 per share. That’s still below yesterday’s intra-day high of $159.

The shares are somewhat volatile. Over Friday and Monday, 370 million shares of GME were traded. The float is 47 million.

Things are much calmer in the rest of the market. The S&P 500 broke out to another all-time high this morning. The index has been as high as 3,870.90 but it’s currently just barely negative.

This morning’s Case-Shiller report said that home prices rose by 9.5% in November. That’s one of the highest gains on record.

Prices nationally rose 9.5% in November, compared with November 2019, according to the S&P CoreLogic Case-Shiller Home Price Indices. That is the strongest annual growth rate in over six years, and a significantly stronger gain than in October, when prices were up 8.4%. It also ranks as one of the largest annual gains in the more than 30-year history of the index.

The 10-city composite annual increase in prices was 8.8%, up from 7.6% in October. The 20-city composite showed a 9.1% year-over-year gain, up from 8.0% in the previous month. Detroit was excluded, however, because of continued data reporting issues due to the pandemic.

“Recent data are consistent with the view that COVID has encouraged potential buyers to move from urban apartments to suburban homes,” said Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “This may represent a true secular shift in housing demand, or may simply represent an acceleration of moves that would have taken place over the next several years anyway. Future data will be required to address that question.”

Our first Buy List earnings report, Silgan Holdings (SLGN), is due out after today’s close. Wall Street expects 53 cents per share.

Posted by on January 26th, 2021 at 11:34 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.