Compared to September 2019, overall there was 20% increase in the amount of homes being sold. However, the majority of the buyers are at the top end of the market. Homes that are priced at a million dollars or more are being sold nearly double the amount as last year. Houses with a price tag in the $250-500K range have also seen an increase in sales by 36%. Homeowners are also seeing their property prices increase. The median house price is at an all time high, $312K.
This pandemic has created a need for more space, which might have directly led to this boost in sales. Stuck in tight spaces with the entire family doing their separate work from home or virtual learning can be stress inducing to families. Interest rates are currently very low and there are less houses available to be bought. The average house is staying on the market for only 21 days.
While this all might appear as good news, economists are worried that the prices of homes are rising too quickly. Home prices are rising well beyond average American wages. People looking to buy a house in the next few years might not be able to as the price of the home they want will be too high. While there is an increase in home purchases, there is a decrease in the amount of first time homeowners. Thus, this housing boom will lead to an increase in already prominent income inequality.
What do you think about the housing boom of 2020? Let us know down in the comments.
This article originally published on GREY Journal.