Quarantine measures introduced in almost all countries of the world due to the Covid-19 pandemic have, to one degree or another, negatively affected home sales. One of the rare exceptions to this rule was the United States of America, where the local market remained stable even at the height of the coronavirus outbreak. Moreover, real estate prices in the United States after quarantine began to rise against the backdrop of purchasing activity by both Americans and foreign investors, some of the latter entering into purchase and sale transactions over the Internet – without visiting the country and viewing properties on site.
The surge in US housing demand that began in June 2020 was driven primarily by a decline in the number of properties for sale – down about 5% year-over-year – and a continued decline in mortgage rates, which hit a record low average in August. values (2.88% per annum). The shortening of real estate sales also had a certain impact, since many buyers who were planning to buy a house or apartment in America rushed to put their plans into practice.
For the most part, this applies to those who, even before the introduction of quarantine in the United States, were planning to buy housing in the private sector. The main role here was played by restrictions on movement and the transition to remote work, because not all city apartments could provide an isolated workplace, not to mention a separate office. Another factor worth noting is the BLM protest movement, since rural areas traditionally have a predominantly white population and a much lower crime rate.
As a result, it was outside the megacities that both US citizens and foreigners living here rushed after the end of quarantine. More than 15% of potential buyers have become interested in housing in the suburbs or far outside the city limits. At the same time, some of them were ready to change not only their district or city, but even their state for the sake of more living space and better infrastructure.
Despite the consequences of the so-called “lockdown” introduced by the American authorities back in March, prices for detached houses in the United States increased by 1.5-1.6% (in June this figure was already 4.3%), and for the first time ever their registration history exceeded the threshold of 330 thousand USD. The average cost of apartments in the US was recorded at 262.7 i.e., which is also higher than last year, although not by much (+1.4%).
At the same time, total sales of single-family properties increased by 20.7%, which is another historical record. At the same time, the average price for all the most common types of residential real estate in the United States (houses, townhouses, apartments in cooperatives and condominiums) reached $295,000, which is 3.5% more than a year ago.
Last summer, almost 2/3 of residential real estate in America were purchased by buyers who had not previously owned a home, while investors accounted for no more than 10% of the total number of properties. Most of them were purchased in the South and West of the country, where, according to the National Association of Realtors, the average price was recorded at 258.5 and 432.5 thousand dollars, respectively – approximately 4.5% and 5.5% more than a year ago .