The impact of the pandemic on the property market was exactly the opposite of what many pundits feared at the beginning of the outbreak – as inventories fell, both property prices and sales rose in 2020.
According to the latest figures from Redfin, the national median home sales price rose 14 percent year over year to $ 330,500, while sales rose 20 percent in 2020. Such high growth in home prices has not been seen since 2013 when it was 14.5 percent, at its highest level in July, while sales are not far from the year-long high of last October of 25 percent.
Despite widespread unemployment and the uncertainty surrounding the pandemic, the record inventory is the main driving force behind this type of highly competitive market. New registrations are down 17 percent from December and 6 percent year-over-year, while the number of active listings (the number of all properties for sale in a given month) is down 24 percent in 2020.
The median of homes for sale remains in the market for 34 days (up from 57 at this point last year), while supply months are a historically low 1.6 percent.
“The imbalance between supply and demand hit a new high in January,” Redfin chief economist Daryl Fairweather said in a prepared statement.
“Buyers were keen to come up with offers and get them quickly to take advantage of historically low mortgage rates while they were in effect. But many homeowners looking to move feel stuck with limited options for moving. They are frustrated with homes finding buyers within hours of entering the market and defeated after repeatedly losing to bidding wars. “
House prices rose in all major US cities – some dramatically (29 percent in Camden, New Jersey and 26 percent in Allentown, Pennsylvania) and others moderately (3 percent in San Francisco and 5 percent in New York).
In line with the professional exodus from expensive coastal cities during the pandemic, cities like San Francisco and San Jose saw most of the homes market, while cities like Salt Lake City and Allentown reduced active housing supply by 66 percent and 55 percent, respectively – one Situation that led to unusual bidding wars in many places.
“People who commit to finding a home this season should plan for the harsh reality that they may need a backup home if they go on a home tour and submit a quote, or are ready to go weeks or months up Another ideal is waiting for the home to hit the market, ”Fairweather said.
Email Veronika Bondarenko