The Coronavirus pandemic has inflicted significant damage on the U.S. economy, including millions of jobs lost and businesses closed. Despite these significant hardships, home prices continue to increase in many markets across the United States.
When the Coronavirus pandemic was wreaking havoc on the U.S. economy, there was a general expectation that home prices would drop, either dramatically through a sudden nosedive or a steady decline. However, data from the National Association of Realtors (NAR) reveals that the real estate market in the U.S. is resilient. For example, the median price for a single-family home in various metro regions actually increased significantly (12 percent, to be specific) in the third quarter of 2020 compared to the third quarter in 2019. At the city level, many metro areas have seen an incredible double-digit increase in average home prices. Some of the most notable price jumps were in the following cities:
- Bridgeport, CT – 27.3 percent increase
- Crestview, FL – 27.1 percent increase
- Pittsfield, MA – 26.9 percent increase
- Kingston, NY – 21.5 percent increase
- Atlantic City, NJ – 21.5 percent increase
- Boise, ID – 20.6 percent increase
- Wilmington, NC – 20.6 percent increase
- Barnstable, MA – 19.4 percent increase
- Memphis, TN – 19.1 percent increase
- Youngstown, OH – 19.1 percent increase
It is worth noting that new home prices were not included in NAR’s data.
In addition to the major price increases listed above, the data in other regions is similarly encouraging. For example, NAR’s data shows home prices increased by double digits in about two-thirds of 181 different metro markets, with the median home price listed at $350,000.
Price Increase in the West
Data published by NAR indicates that the largest increases in home prices occurred in Western states. In fact, average home prices increased by close to 14 percent (approximately 13.7 percent) in the third quarter of 2020 compared to home prices from the third quarter in 2019. Though, it is worth noting that home price increases in the Northeast came a close second at 13.3 percent. Home prices in the South came in at third place with an average increase of 11.4 percent. Homes in the Midwest saw a price increase of approximately 11.1 percent.
The average price increases are a big reason why many real estate investors engaged in flipping houses have encountered tremendous demand for their renovated properties. Some real estate investors have even highlighted intense bidding wars among home buyers who are looking to take advantage of historically-low interest rates and an incredibly low inventory of available homes for sale.
Now is the Time to Consider a Hard Money Loan
As you can see, now is as good a time as any to take action on that real estate project you’ve been eyeing. If you are interested in purchasing a distressed home with the goal of fixing it up and selling it for a profit, you should look into the viability of a hard money loan in Los Angeles to help finance the project.
Interested in Learning More About How to Apply for Hard Money Loans in Los Angeles? Contact PB Financial Group Today
If you are looking to potentially apply for a hard money loan to help facilitate a real estate venture like a fix-and-flip project, take action by contacting PB Financial Group.
PB Financial Group is a premier direct hard money, private money and bridge lender, who has been providing quick funding since 2006 and have funded over 2700 hard money/private money loans. Our objective is to work to satisfy your financing needs on important real estate projects throughout California in an efficient and effective manner. To schedule a consultation please contact PB Financial Group at 877.700.3707 or visit www.CalHardMoney.com for further information.
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