The coronavirus pandemic has not only created huge unemployment and economic hardship for millions, but has also inflated property prices across the country. Recent message Redfin found that the national median home price climbed to $ 335,519 in November, 14 percent more than a year ago – the largest annual profit since July 2013. A record 35 percent of homes sold at more than the required price and sales were quick, with homes averaging just 27 days on the market, a record low.
Average house prices have risen in all 85 major markets (population 750,000 and up) that Redfin monitors. This week’s chart shows the 20 markets where prices have changed the most. (Some markets are named after the major cities that surround and include the surrounding commuters. Others are defined more generally, such as the Nassau County, NY market.)
It was already quite difficult for buyers at the bottom of the economic ladder to save on a down payment and afford a mortgage. In 2020, however, this worsened, as it was in markets with lower prices that sales prices increased the most. Of the 20 markets with the largest increase during November, 14 had prices below the national median. San Francisco, the most expensive market (average selling price of $ 1.4 million), meanwhile saw the smallest increase among the cities where Redfin tracks, at just 1.8 percent a year.
However, this does not mean that expensive markets have not been competitive. In Oakland, California, 20th on our list, more than 71 percent of households sold more than in November, with a median selling price of $ 840,000, a year-over-year increase of 17 percent.
Will brokers get rich on commissions from the sale of all these expensive houses? Unlikely because there aren’t that many to sell: Of all the markets in the study, supply in November was 23 percent lower than a year ago, the lowest level recorded for the month.