FOCUS ON THE PRICE OF A HOUSE IN THE USA

 FOCUS ON THE PRICE OF A HOUSE IN THE USA

In the United States, as everywhere else, real estate prices fluctuate year after year. If you're planning to buy a home or invest overseas, you'll probably want to get an idea of how much a house costs in the U.S. Generally speaking, real estate prices haven't fallen, which is a real relief for sellers. However, they haven't risen rapidly in recent months either.

Keeping an eye on US real estate prices will give you greater peace of mind when considering your purchase. Investir US provides advice and information.

What is the average price of a house in the USA?

Until 2021, the median price of a home in the USA was $340,000. Note that the median price should be considered a benchmark, since it indicates that half of the properties sold for more than $340,000... the other half, below this mark. Generally speaking, the median price is a good way to observe the evolution of housing prices, without deviating from the "classic" format in terms of characteristics and location.

$340,000: This is the median price of a home in the United States, both for a new property and for a property already built. If we remove properties that have just been built from the equation, we see that the median price of a home in the United States is around $300,000. This threshold marks an increase of nearly 15% compared to the previous year (2019).

It's also worth noting that property prices in the United States have been rising steadily for nearly 10 years. Price growth may slow as the number of properties for sale increases; it's likely to continue, given the relatively high number of buyers competing for property in a market where inventory currently remains very low.

What can we expect from the price of a house in the USA in 2021?

Overall, real estate professionals are predicting an 8% increase in home prices in 2021, followed by a 5.5% increase in 2022. This trend indicates that homeowners planning to sell their homes this year or next can expect significant gains. It's not necessarily wise to wait and think that your home's value could double in the coming months.

On the other hand, if you're looking to buy, given the slowdown in economic growth and the market situation, there's less chance of seeing the price of a house in the US skyrocket from one year to the next.

US Home Price Trends

If we look at the evolution of prices of already built housing, we observe the following regional trends in terms of median prices:

In the West: $468,000 (+14%)

In the Northeast: $354,000 (+17%)

In the South: $270,000 (+15%)

In the Midwest: $239,000 (+15%)

A quick glance at these figures reveals that prices vary dramatically depending on the region in which the property is located. The price of a home in the US is lower in the Midwest than in the Northeast or West.

If we consider house prices based on their age, again taking into account the median price, we see that the impact is also significant. In 2020, the median price of a new home was $334,000, compared to $260,000 for an existing property.

Last but not least, the size of the property affects its price. In 2020, the median price per square foot was $140.11. Comparing this figure to the average size of homes sold in the United States, 1,900 square feet (3 bedrooms and 2 bathrooms), helps us understand the relationship between size and price when it comes to real estate prices in the United States.

Buyers, sellers: what's the point of knowing the price of a house in the USA?

While the price of a home in the US varies based on multiple factors, it's worth considering what this means for buyers and sellers.

For the buyer:

When buying a home, price can be a somewhat intimidating factor . However, it shouldn't be a deterrent, as prices are negotiable. However, it's essential to set a budget beforehand.

Without worrying too much about price trends, share your needs with a real estate professional who will be able to find a property that meets your needs and your budget.

Unless you can pay for your new home in full with your own funds, you will need to get a mortgage. As such, it is important to stay reasonable and consider a price equivalent to a quarter of your net salary in terms of monthly repayments, including taxes, insurance and condominium fees.

For the seller:

For the seller, the main question is how much profit they can expect from the sale of their home. The answer depends on a wide variety of factors.

To ensure you get the right price for your home, rely on an experienced real estate professional in your area. They will be able to conduct a market analysis to determine the selling prices of similar homes in your area, so you can set the right price and attract potential buyers.

Buy or sell at the best price: how to do it?

Having a real estate expert on hand is essential for buying or selling a home at the best price. You can rely on a professional who knows the ropes and can help you reduce costs or achieve the right value for your property.