Expensive Home Sales Increased After Pandemic
November 30, 2020
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%.
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.
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.
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.