The housing market in the United States has seen a dramatic shift in the last year, with house prices dropping by 3.8%. According to a nationwide report released by the National Association of Realtors (NAR), this decrease is the largest since 2011.
The report found that the median existing-home price for all housing types in the U.S. was $258,100 in April 2020, down 3.8% from April 2019 ($268,800). This decrease is the largest year-over-year drop since 2011, when home prices fell 4.2%.
The NAR report also found that the number of existing-home sales dropped by 17.8% from April 2019 to April 2020. This is the largest year-over-year decrease since the NAR began tracking existing-home sales in 1999.
The decrease in house prices is largely attributed to the economic downturn caused by the COVID-19 pandemic. The pandemic has caused a decrease in consumer spending, leading to a decrease in demand for housing. Additionally, many potential buyers are uncertain about their job security and are hesitant to make a large purchase such as a house.
The decrease in house prices has been felt across the country, with all four major regions experiencing a drop in median existing-home prices. The West saw the largest decrease at 5.2%, followed by the Northeast (-4.7%), Midwest (-3.3%), and South (-2.7%).
The decrease in house prices has been beneficial for some potential buyers. Those who are able to secure financing and have job security may be able to take advantage of lower prices and purchase a home at a discounted rate. However, for those who are unable to secure financing or are uncertain about their job security, the decrease in house prices may not be enough to make homeownership a reality.
It remains to be seen how long house prices will remain low and if they will continue to decrease further. The NAR report suggests that prices could remain low through the end of 2020, but that they could begin to increase again in 2021 as the economy begins to recover from the pandemic.
Overall, the nationwide report released by the NAR shows that house prices in the U.S. have decreased by 3.8% in the last year. This decrease is largely attributed to the economic downturn caused by the COVID-19 pandemic and is the largest year-over-year drop since 2011. While this decrease may benefit some potential buyers, it may not be enough for those who are unable to secure financing or uncertain about their job security. It remains to be seen how long house prices will remain low and if they will continue to decrease further.