As Americans embraced record high prices, from groceries to gas, buying a home became more expensive. A record number of homes in the United States are worth at least $ 1 million, according to an analysis by real estate agent Redfin.
Redfin used a housing value index model, along with public records and a list of real estate properties called MLS, to estimate the current and past values of more than 85 million properties nationwide. The results show that a record 8.2% of US homes in February, about 6 million homes, were valued at over $ 1 million.
This is an increase from 4.8% two years before the coronavirus declared a pandemic.
California has the largest chunks of homes worth more than $ 1 million, and 9 out of 10 properties in both San Francisco and San Jose fall into the $ 1 million or more category. According to Redfin.. The largest increase in home prices recorded was seen in Anaheim, California. The share of homes worth at least $ 1 million has almost doubled to 55%.
Redfin naturally increases the value of homes over time, and millions of dollars of homes will make up an increasingly large part of the home stock, but with a pandemic, within a few weeks. The price has skyrocketed.
This is because housing demand far exceeds supply as Americans seek to take advantage of record low interest rates and telecommuting.
In the four weeks leading up to February 27, Redfin analyzed that the number of homes for sale decreased by 50% from two years ago to 456,000. As a result, the median home sales price in the United States rose 33% to a record high of $ 363,975.
California is not the only state experiencing a whirlwind housing market. In Honolulu, the share of homes worth at least $ 1 million increased by nearly 18% in February. Seattle increased 21 percent, while Austin, Texas increased 8.4 percent, with at least 3.9 percent of homes worth at least $ 1 million in February 2020, jumping to 12.3 percent last month.
“A home that sold for $ 350,000 before the pandemic will be close to $ 500,000. My advice to buyers: If you find something that looks like a reasonable price, buy it. The price can go up. Austin’s Redfin agent, Crystal Lopez, said:
Another analysis According to the online real estate market, Zillow predicts that annual home price growth will continue to accelerate until the spring of 2022, peaking at 21.6% in May and gradually slowing to 17.3% by January 2023. did.
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