2020 has been a year full of the unexpected and has been unpredictable, to say the least. The economic effects of the pandemic have been staggering; businesses have had to close or make modifications that result in lost income, many Americans are collecting unemployment due to COVID-19 related layoffs. In this type of economic climate, it would be expected that the housing market and home prices would suffer as well.
Nevertheless, 2020 has brought drastic increases in home prices. According to an article published in Realtor Magazine, ” . Existing-home prices for all housing types jumped 15.5% year over year in October to $313,000, according to the National Association of REALTORS®.” In fact, this year’s home appreciation rate is the fastest appreciation rate the housing market has seen in 6 years.
The home value gains are seen across the United States. New York saw some of the lowest gains, being up 2.6% over the past year. However, areas in other parts of the Northwest, such as Maine, saw home values appreciate almost 15%. Western states are seeing values increase around 12 and 13 percent compared to last year.
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