We have all been impacted in some way, shape or form by the COVID-19 pandemic.
But, after a couple of months of uncertainty, home sales both locally and nationally appeared to have stayed very competitive for buyers.
Housing Market Data from July
From home price increases to more home sales in general, let’s take a look at the trends seen this summer.
Higher House Prices
Despite the COVID-19 pandemic, house prices in the St. Louis region have risen 5.1 percent in the last year. Nationwide, house prices rose by 0.8 percent in the second quarter and 5.4 percent overall in the last year. In St. Louis, the median sales price in July was $245,000, up 11.4 percent from 2019.
While house prices dropped in May, when much of the nation was on lockdown, they rebounded again in June, carrying through August. Since the recession was still happening in 2011, housing prices in St. Louis have now increased 46 percent in the last nine years.
The increase in house prices is a consequence of high demand, lower supply and low interest rates.
Jump in Home Sales
Not only were houses priced higher than this time last year, but they also sold in unexpected quantities as well. In St. Louis, the pending sales for single-family residential homes in July were up 18 percent from July 2019. Closed sales were up 8 percent as well.
Nationally, home sales jumped 24.7 percent from June and rose 8.7 percent over July of last year.
Why the Housing Market Has Thrived
Toward the start of the pandemic, the housing market slowed. From the uncertainty surrounding COVID’s impact to record unemployment, it appeared many were hesitant to move.
However, once lockdown came to a close, buyers were ready to continue their search and close on homes more than ever. While many have lost their jobs, those in upper-income brackets with more stable jobs, are taking advantage of record-low mortgage rates. In addition, those who may have now switched to working from home, no longer need to live close to the office.
In the last six months, individuals have been spending more time at home in general, which may heighten the urge to find a new, comfortable space.