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Analyse US House & Home Prices
Developement of US house pricesWhat's Your Home Worth Today? Brows by city to find out average value of your house. We analyse millions of market data to calculate value range for different types of houses. (VR) The US house market has gone through different stages within the last 20 years. Prices went from high to low and back. As many other real estate markets it was heavy affected by world financial crisis which had it's origin in US bank sector. Especially US real estate banks were hardly affected by this situation. Recovering went fast so todays market is about 50% above 2009. But prices within cities also differ.
Like almost every sector of the economy in early 2020, residential construction in the United States suffered from the coronavirus and subsequent lockdowns. In March and April, several scheduled new construction projects were postponed, and home sales dropped sharply as uncertainty surrounding the lockdowns had a noticeable impact on the real estate market. The downturn, however, was brief. No other sector has recovered so rapidly and in such a textbook V-shape. In June and July 2020 sales were up an astounding 20.2% and 24.7% respectively in comparison to the same periods in 2019, and in June more homes were sold in the United States than at any time in the last 13 years. According to data from the National Association of Realtors (NAR), sales rose again in August and remained strong in the fourth quarter. This boom in demand for houses was a welcomed and rare highlight in a domestic economy with shrinking fiscal performance. Home sales continue to rise across the county as inner city residents leave the confines of city centers behind. This has been reflected in growing demand for real estate in traditional suburbs or even further out in in so called "Zoom" cities. These are attractive communities with good schools, nice neighborhoods, and solid infrastructure located beyond the traditional commuting distance. People who can work from home and Zoom teleconference are opting for them because they can get more space for the same money. Additionally, demand for larger homes could increase significantly due to the shift to home offices. Low interest rates are also driving sales In addition to the COVID-19 pandemic, low interest rates on mortgages - three percent for standard 30 years loans - have also given an unexpected boost to home buying in the United States and prices are reaching record highs in nearly all metropolitan areas. In two-thirds of the 181 regions observed by the NAR, prices rose by double-digit percentages in 2020. In the Washington D.C. metropolitan area for example, the residential housing industry posted $5.3 billion in sales in July 2020, up 26% from a year earlier and the median price of single-family homes hit a ten-year high. In one emerging Zoom city, Barnstable on the Cape Cod peninsula, just under two hours drive from Boston, house prices rose by almost 20% in 2020. In the coastal town of Bridgeport, northeast of New York, real estate prices jumped 27% and, at $591,000, were even more expensive on average than houses in the greater Boston area. Both cities are also well established vacation and recreation destinations offering a wide variety of leisure activities. Prices increase highest on the West Coast Current price jumps are the result of rising demand outstripping current supply in coveted communities. At the end of the third quarter 2020, the NAR calculated that there were nearly 1.5 million homes for sale, down nearly 20% from the same period the previous year despite the building boom. West Coast homes were the most expensive, averaging $1.4 million in San Jose, $1.12 million in San Francisco, and $910,000 in Anaheim. With prices this steep people are moving even further from metropolitan centers on the West Coast. Currently, the fastest growing state in the United States is Idaho. Even before the COVID-19 pandemic, Idaho had become the top relocation destination for many Californians for whom life in the coastal cities has become too expensive and too exhausting. In 2020 demand climbed even higher and prices in Boise, the state capital, rose by 20%. Even in the neighboring state of Montana to the north, the "Californication" trend is being felt. Larger than Germany but with only one million residents, Montana has plenty of space, but growth has only occurred in highly sought after cities like Bozeman where prices jumped 21% in 2020. On average, a single-family home here now cost $584,000, well above the national average. Bozeman's scenic location also attracts tech-millionaires from Silicon Valley who purchase million-dollar estates here. Housing boom is expected to continue An abrupt end to the residential construction trend is unlikely for the time being. There are plenty of buyers ready to enter the market and further gains are likely as the labor market continues to rebound. This is reflected by the market performance of US homebuilders such as D.R. Horton and MDC Holdings and of home improvement chains such as Lowe's and Home Depot. The share prices of all these companies have risen rapidly in recent months and are currently near their record highs. The S&P Homebuilders Select index is also up around 20% since the beginning of 2020, so gains in the housing market look set to continue for the time being. Inequality in the housing market is growing On average, a single-family home in the United States currently costs $313,500, up 12% from 2019. Median family incomes, however, have grown just 2.9% over the same period. For homeowners, this is great news, as their wealth grows while they sleep. Those looking for a home, on the other hand, are having a harder time finding affordable housing and inequality is growing. In any case, real estate in the upper price segment is particularly coveted. The number of houses that changed hands for a million dollars or more doubled within the last year. |
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