Number of the Day Shows Pandemic Spike In Home Prices
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That’s how much the typical home purchased between April and June sold for, a staggering 26% higher than homes bought in pre-COVID months, a survey of homebuyers shows.
In the nine months before the pandemic, the median home price among surveyed buyers was $270,000, according to an annual report released by the National Association of Realtors Wednesday, but increasing demand and a low supply of homes for sale have pushed prices higher. In fact, 23% of buyers in the pandemic months spent $500,000 or more, compared to 14% prior to March, the survey showed.
While home sales have come roaring back from a pandemic slump in April and May, some economists are wary an overheated market could lead to unsustainably high prices. In one sign of an impending slowdown, newly released data from the Mortgage Bankers Association shows mortgage applications for home purchases have fallen six out of the last seven weeks, reaching their lowest level since May, when homebuying was still suppressed by COVID-19 lockdown restrictions.
National Association of Realtors. "Pandemic Caused Buyers to Seek Multi-Generational Homes, Sellers to Sell Faster." Accessed Nov. 11, 2020.
Mortgage Bankers Association. "Mortgage Applications Decrease in Latest MBA Weekly Survey." Accessed Nov. 11, 2020.