Home sales are skyrocketing during the pandemic, but the most dramatic increase is happening at the top of the market. Sales of homes costing $1 million or higher have doubled since last year.
Based on NAR reports, home sales in luxury vacation destinations have increased since July by 34% year over year in September.
With the pandemic causing work and school to be done at home, people who are financially secured are more compelled to look for a bigger or spacious home. This is cost-effective as mortgage rates are still at record lows.
Home prices are still rising as buyer demand remains high and inventories low. Based on NAR reports, sales for homes with prices ranging from $250,000 to $500,000 increased in September by 36%. The median home price last month reached a record high of $312,000, which is an increase of 14.8% from a year ago.