STATE OF PLAY OF REAL ESTATE PRICES IN THE UNITED STATES

 STATE OF PLAY OF REAL ESTATE PRICES IN THE UNITED STATES

In 2019, the median sale price of properties in the United States was between $299,400 and $339,000. In 2020, Zillow predicts a 2.8% increase in US real estate prices. Despite the increase, it's likely to be slower than usual, representing a definite interest for future real estate investors. Demand is strong, particularly among millennials who are interested in individual properties. At a time when uncertainty related to the Covid-19 crisis persists, and as we enter the new year 2021, it's interesting to take stock of real estate prices in the United States.

US Real Estate Prices: The Most Expensive Areas

Amid a health crisis, devastating climate events, and an unprecedented economic crisis, home sales in California are soaring. According to data from the U.S. Census Bureau, more and more Americans are heading to the El Dorado State (California's nickname), with most relocations occurring west of the Mississippi River. This is, in any case, what appears in the PropertyShark rankings, confirming that California is securing its position as the leading country in terms of real estate market prices.

At the top of PropertyShark's ranking is the city of Atherton, holding its position for the fourth consecutive year, with a median sales price of $7 million. South of Los Angeles County, there's also the largest concentration of areas with record-high real estate prices.

San Francisco, for its part, is home to the 11 most expensive geographic areas, establishing itself as the metropolis in which the concentration of high-priced properties is highest. About a hundred geographic areas marked by high prices are located in the Los Angeles and New York City Bay Areas.

Located in the Hamptons, Suffolk County, at the tip of Long Island, Sagaponack is a small town of 300 residents that consistently ranks first in the U.S. housing price rankings. After Atherton, for the third year in a row, it boasts the most expensive homes, with an average price of $3.88 million.

For the first time in five years, Tribeca (a trendy neighborhood in the borough of Manhattan) is not among the most expensive cities in the US. This is primarily due to the impact of the coronavirus crisis, which is more so in New York than in any other region. This is also the first time in history that no New York City neighborhood has appeared among the top 10 most expensive places in the country.

In third place is Massachusetts, with four geographic areas among the highest-priced locations in the United States. These include the famous locations of Beverly Hills and Santa Monica.

In King County, Washington, which is home to Seattle, the median home sale price is $3.2 million, the 9th highest in the United States. Further down the list, Miami-Dade County, Florida, ranks 23rd , with a median home sale price of $2.7 million.

The most affordable places to live in the USA

Based on the predictive analyses of the Mashvisor website, it is possible to compile a list of the major American cities in which real estate prices are the most affordable:

Pittsburgh, PA (median price: $230,803)

Pittsburgh stands out as a city where real estate investment is relatively profitable. The cost of living is low, 5.8% lower than the U.S. average. More than half of Pittsburgh's residents (56%) are renters, making this city a safe bet for rental investment. Pittsburgh is also experiencing strong economic growth, which also contributes to economic growth.

Detroit, MI (median price: $168,689)

The so-called Motor City offers some of the most affordable real estate investments in the United States. The cost of living is also lower than in the rest of the country, and the economic recovery seems to be putting Detroit under a good star, making it an attractive city in terms of rental real estate.

Fort Wayne, IN (median price: $214,240)

In the state of Indiana, Fort Wayne is one of the least expensive cities in the USA. Other cities in this American state also offer good prospects for investors, including Bloomington, South Bend, Evansville, Indianapolis, Lafayette, and Elkhart-Goshen.

Cleveland, OH (median price: $163,552)

Those keen on a rental investment in the United States can't afford to miss Cleveland. This rapidly growing city offers affordable prices and a cost of living 22.9% lower than the national average. The success of Cleveland's rental market is, and will continue to be, driven by its economic growth, particularly its manufacturing sector.

US real estate prices and the health crisis

As the real estate market attempts to recover from the disruption caused by the coronavirus in spring 2020, property prices are on the rise again.

In June 2020, according to the Federal Reserve Bank of St. Louis, the median home price in the United States was around $329,000. Compared to the figures for March, three months earlier, this represents an increase of nearly $22,000.

Comparing these figures with those of the previous year, we also notice an increase of 5.6%.

Median home prices in the United States increased in 81 of the country's 85 largest metropolitan areas, according to a report by Redfin. The National Association of Realtors ( NAR ), meanwhile, reported an average increase of more than 20% in U.S. home prices across the country's major regions.

Amid the health crisis, the housing market is among the sectors considered to be driving the US economic recovery. However, experts remain divided on whether the recovery will be sustainable or whether a further decline could occur as pent-up demand dries up.

Professionals at the real estate firm Haus said they expect the housing market recovery to take the shape of a "flying W," as opposed to a traditional "U" or "V." They note that current activity levels resulting from pent-up demand will not be sustained in the final months of the year. Experts at the National Association of Realtors, meanwhile, say the recovery is sustainable for "many months to come."

To consider a real estate investment and obtain reliable information on real estate prices in the United States, do not hesitate to contact the Investir.US team.