The Coronavirus By the Numbers: How a Yearlong Pandemic Has Impacted the U.S. Housing Market
As of March 1, 2021, Redfin reports a $3.1 trillion increase in U.S. home values amid the pandemic, raising total home worth to $32.4 trillion. The median home price hit $330,500, a 14.3% jump, marking the highest gain since 2013. Inventory plummeted by 23.6%, fostering intense bidding wars with 58.3% of offers facing competition. Luxury home sales surged 45%, while demand for second homes grew 84%. 2.7 million homeowners remain in forbearance, and 30.3% of Redfin users searched for different metro areas. These trends reflect significant market shifts during the pandemic.
- U.S. homeowners gained $3.1 trillion in home value during the pandemic.
- Median home prices rose to $330,500, a 14.3% increase, the highest since 2013.
- Luxury home sales surged 45% YoY, indicating strong demand in the high-end market.
- Demand for second homes increased by 84%, reflecting changing buyer preferences.
- Only 2.7 million homeowners remain in forbearance as of mid-February 2021.
- Inventory declined by a record 23.6%, leading to a housing shortage.
- 58.3% of home offers faced bidding wars, indicating an extremely competitive market.
- First-time buyers struggle due to rising prices and inventory challenges.
SEATTLE, March 1, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — As the world approaches the one-year anniversary of the World Health Organization declaring Covid-19 a pandemic, a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage, looks back on its impact on the U.S. housing market. The coronavirus has upended just about every aspect of daily life, including where Americans live, what they look for in a home and how they go about the homebuying process. Redfin created 12 charts that illustrate the pandemic's profound impact on the U.S. housing market, available in the full report and summarized below.
Despite the economy's plunge into recession, U.S. homeowners have reaped
2013: The last time U.S. home prices surged this much
The median home sale price in the U.S. was
"Surging prices are helping local homeowners build equity, but also creating barriers to entry for many first-time buyers here in Albuquerque," said Redfin New Mexico real estate agent Austin Wolff. "With so many affluent folks moving in from out of state, families who've been here for generations could get priced out. But beginner buyers shouldn't give up. I've had clients win homes by using creative strategies that don't require a huge down payment or the highest bid."
There are significantly more buyers than there are sellers—an imbalance that has existed for years but has significantly intensified during the pandemic. The supply of homes for sale plummeted a record
"Inventory is so low that it has even been tough to get in to see homes at all," said Redfin Cleveland real estate agent Danielle Parent. "It's a very, very challenging market for buyers, so I'm telling my clients that they should always have second- and third-choice homes in mind and may want to consider making offers sight-unseen."
The U.S. is currently in one of the most competitive housing markets in history. Nationwide,
Another sign of intense competition is homes selling quickly and fetching more than the sellers originally ask for. The typical home that sold in January went under contract in 34 days—22 days fewer than a year earlier—and a third (
Sales of luxury homes surged
Similarly, demand for second homes jumped
2.7 million: The number of U.S. homeowners in forbearance
About
Nationwide,
One-third: The share of Redfin.com saved searches that filter exclusively for single-family homes
Single-family homes are back in vogue as Americans spend lots of time inside during the pandemic. A third (
Redfin.com pageviews of homes in both small towns and rural areas jumped nearly
Almost two-thirds (
Purchasing a home sight-unseen has become more feasible during the pandemic thanks to high-quality 3D walkthroughs and virtual tours. Views of 3D walkthroughs on Redfin.com have soared
1 in 4: The share of listings that mention home offices
With Americans spending so much time at home, features including home offices and nice views have grown in popularity. A quarter (
16.7% of homes listings mentioned views (+8.4% year over year)17.2% of home listings mentioned spas (+6.8% year over year)13.0% of home listings mentioned pools (+2.4% year over year)5.7% of home listings mentioned lakes (+9.6% year over year)
To read the full report complete with charts, please visit: https://www.redfin.com/news/coronavirus-pandemic-real-estate-impact-charts
About Redfin
Redfin (www.redfin.com) is a technology-powered residential real estate company, redefining real estate in the consumer's favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we also run the country's #1 nationwide brokerage website, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 95 markets in the United States and Canada. Since our launch in 2006, we have saved our customers nearly
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
View original content to download multimedia:http://www.prnewswire.com/news-releases/the-coronavirus-by-the-numbers-how-a-yearlong-pandemic-has-impacted-the-us-housing-market-301237261.html
SOURCE Redfin
FAQ
What is the total increase in U.S. home values reported by Redfin?
What was the median home price in the U.S. in January 2021?
How much did luxury home sales increase year-over-year?
What percentage of Redfin home offers faced bidding wars in January 2021?
What share of homeowners are currently in forbearance?