The housing boom ignited by the COVID-19 pandemic has been even bigger than previously thought, according to data released by the Federal Reserve Bank of New York in its report for the final quarter of 2020.
Total household debt increased by $206 billion (1.4 percent) to $14.56 trillion for the last three months of 2020, driven in part by a steep increase in mortgage originations, the report stated.
That total debt balance is $414 billion higher than at the end of 2019.
But wait, there's more.
Home prices increased 9.5 percent in November, the highest jump in six years, according to an analysis by Bloomberg Opinion. (Data for December has not yet been released.)
"For now, what’s clear is that 2020’s housing boom was bigger than anyone could have imagined at this time last year when COVID-19 still felt like a distant threat," the Bloomberg analysis says. "It has fundamentally shifted the ground beneath the U.S. economy and set the foundation for a recovery that could be unlike anything in recent memory."
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