Expensive Home Sales Increased After Pandemic
The share of expensive home sales as a percent of all home sales skyrocketed after coronavirus lockdowns loosened earlier this year.
According to a Sundae data analysis, the coronavirus pandemic has led to a significant increase in the share of expensive homes being sold relative to all homes sold nationwide.
Homes that sold for more than $350,000 composed nearly 40% of all sales in October, up from around 30% in the early months of 2020. Homes selling for over $800,000 were less than 5% of all homes sales in the beginning of the year, but were over 8% by October.
Before the pandemic, homes in the most affordable price category ($200,000 or less) made up nearly 40% of all homes sold in America. By October, their share was less than 30%.
San Diego
The national trend held in San Diego County.
Homes that sold for more than $900,000 in October made up the largest share of all homes sold in the pricing categories pictured below. Homes in this price range composed 30% of all San Diego home sales in October, up from around 20% before the pandemic.
Meanwhile, homes that sold for under $550,000 went from around a third of all San Diego home sales to well under 20% in October.
Los Angeles
The shift toward more expensive homes was even more dramatic in Los Angeles County.
Homes that sold for more than $900,000 in October made up by far the largest share of all homes sold in the pricing categories below. Homes in this price range composed well over 40% of all sales in October, up from around 30% before the pandemic.
Meanwhile, homes that sold for under $500,000 went from around a fifth of all LA home sales to just above 10% in October.
Inland Empire
In San Bernardino and Riverside Counties, the increase of expensive home sales was present but less drastic.
Homes that sold for more than $600,000 in October made up over 20% of all sales in October, up from just above 10% in the early part of 2020.
Meanwhile, homes that sold for under $300,000 (the lowest pricing category in the analysis) went from around 30% of all Inland Empire home sales before the coronavirus to under 20% in October. These homes made up the lowest share of any pricing category.
What’s driving this trend?
Probably the biggest factor is a desire to upsize after months of shelter-in-place. Homebuyers looking for more space end up spending more on their home, driving up median and average home prices.
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Joey is a writer, editor, and content marketer with nearly 20 years of experience developing award-winning content strategies and building digital audiences of millions for brands and publishers alike. At Sundae, Joey leads the team responsible for creation and distribution of editorial content across Sundae's brand channels.