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Pandemic Heats Up US Housing Market

Even though the COVID-19 pandemic is hurting the U.S. economy, the country's housing market is booming. The pandemic has prompted lockdown orders. Americans are now telecommuting. Kids are studying at home. Gyms are closed. A few among the many reasons pushing Americans across the country to seek bi

BY Realty Plus
Published - Nov 26, 2020 8:10 PM

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Even though the COVID-19 pandemic is hurting the U.S. economy, the country's housing market is booming. The pandemic has prompted lockdown orders. Americans are now telecommuting. Kids are studying at home. Gyms are closed. A few among the many reasons pushing Americans across the country to seek bigger homes. Coupled with record low interest rates and an existing homes supply shortage, the pandemic demands are driving up housing prices in many parts of the country. The median home price in the U.S. is now $318,000 - a 16 percent increase from last year, according to the National Association of Realtors. In some locations, home prices spike rapidly - something first-time home buyers Alicia Konkel and Chris Shreeve are finding out firsthand in the Seattle area where the median home price is $618,000. The engaged couple delayed their wedding indefinitely because of the pandemic, so they're focusing on buying a home. With offices closed, workers from Seattle's downtown core are seeking to buy in the suburbs. A migration seen in other cities. But the increase in home prices worries advocates. They say the pandemic is impacting working-class and middle-class families disproportionally. They may have lost incomes, and may be hanging on to a house only because of eviction or foreclosure moratoriums.

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Tags : INTERNATIONAL Housing Home buyers realtors pandemic USA Moratorium United States NAR