In May 2020, 34 percent of U.S. realtors said that home buyers delayed the process for a couple of months due to the COVID-19 pandemic, and 19 percent said their clients stopped looking for a new home due to concern about job or loss of job. At the same time, more than 20 percent reported that their clients continued to meet up with them in person and look for new home despite the ongoing pandemic.

Residential real estate transactions saw both a decline as well as an increase during the coronavirus pandemic in 2020, depending on the country. In Denmark, for example, property sales increased by over seven percent year-on-year in the second quarter of 2020. This was in stark contrast to the United Kingdom, where provisional and non-seasonal data suggested the country saw one of its largest drops in housing transactions since 2009. Some countries, on the other hand, already witnessed a decrease in their transactions before COVID-19 hit Europe. The housing trade inFrance, for example, suffered a large decrease in the first quarter of 2020, right before quarantine measures were enforced. Data for Germany, on the other hand, suggested that its housing market was still growing before the lockdown. Whether this was still the case in 2020 remains to be seen.

The number of new homes sold increased in 2023, after falling in 2022. Considering that the vast majority of purchases were financed through a conventional mortgage, it is of no surprise that the rising mortgage interest rates are one of the main factors for transactions slowing. In fact, more buyers were willing to buy cash in 2023 than in 2021. How has the increase in sales activity influenced house prices? When demand outweighs supply, prices tend to increase. In the United States, the recent spike in house sales has contributed to average house prices growing at a higher pace than in recent years. Furthermore, the rising house price-to-income ratio indicates that homes are becoming less affordable. Has the coronavirus (COVID-19) pandemic affected Americans’ homeownership plans? Overall, the coronavirus (COVID-19) pandemic has positively influenced the homeownership plans of people in the U.S. According to a survey conducted among American adults, 28 percent of Millennials were more interested in buying a home due to the coronavirus pandemic, compared to 13 percent who were less interested.

The coronavirus (COVID-19) pandemic and the lockdowns during this period had an impact on the attitudes of prospective home buyers in the United Kingdom (UK) in different ways. On one hand, there was a large percentage of prospective home buyers of 63 percent that said COVID-19 motivated them to buy homes between March 2020 and March 2021.
However, concerns of financial security and the home buying process being harder were also registered at high rates. 71 percent of prospective home buyers were worried about their financial security, 68 percent reported that lockdowns made it harder to buy homes. This shows that while the motivation and interest in buying homes was large, but the conditions of lockdown and the financial impact of the coronavirus (COVID-19) pandemic were a big barrier towards making purchases.

The number of home sales in the United States peaked in 2021 at almost seven million after steadily rising since 2018. Nevertheless, the market contracted in the following year, with transaction volumes falling to 4.8 million. Home sales remained muted in 2024, with a mild increase expected in 2025 and 2026. A major factor driving this trend is the unprecedented increase in mortgage interest rates due to high inflation. How have U.S. home prices developed over time? The average sales price of new homes has also been rising since 2011. Buyer confidence seems to have recovered after the property crash, which has increased demand for homes and also the prices sellers are demanding for homes. At the same time, the affordability of U.S. homes has decreased. Both the number of existing and newly built homes sold has declined since the housing market boom during the coronavirus pandemic. Challenges in housing supply The number of housing units in the U.S. rose steadily between 1975 and 2005 but has remained fairly stable since then. Construction increased notably in the 1990s and early 2000s, with the number of construction starts steadily rising, before plummeting amid the infamous housing market crash. Housing starts slowly started to pick up in 2011, mirroring the economic recovery. In 2022, the supply of newly built homes plummeted again, as supply chain challenges following the COVID-19 pandemic and tariffs on essential construction materials such as steel and lumber led to prices soaring.

Chile Real Estate Market: National: Sales: Total data was reported at 3,008.000 Unit in Sep 2024. This records a decrease from the previous number of 3,153.000 Unit for Aug 2024. Chile Real Estate Market: National: Sales: Total data is updated monthly, averaging 4,748.000 Unit from Jan 2004 (Median) to Sep 2024, with 249 observations. The data reached an all-time high of 8,703.000 Unit in Aug 2015 and a record low of 2,169.000 Unit in Apr 2020. Chile Real Estate Market: National: Sales: Total data remains active status in CEIC and is reported by Chilean Construction Chamber. The data is categorized under Global Database’s Chile – Table CL.EB001: Real Estate Market: Supply and Sales. [COVID-19-IMPACT]

The number of U.S. home sales in the United States declined in 2023, after soaring in 2021. A total of four million transactions of existing homes, including single-family, condo, and co-ops, were completed in 2023, down from 6.12 million in 2021. According to the forecast, the housing market is forecast to head for recovery in 2025, despite transaction volumes are expected to remain below the long-term average. Why have home sales declined? The housing boom during the coronavirus pandemic has demonstrated that being a homeowner is still an integral part of the American dream. Nevertheless, sentiment declined in the second half of 2022 and Americans across all generations agreed that the time was not right to buy a home. A combination of factors has led to house prices rocketing and making homeownership unaffordable for the average buyer. A survey among owners and renters found that the high home prices and unfavorable economic conditions were the two main barriers to making a home purchase. People who would like to purchase their own home need to save up a deposit, have a good credit score, and a steady and sufficient income to be approved for a mortgage. In 2022, mortgage rates experienced the most aggressive increase in history, making the total cost of homeownership substantially higher. Only 15 percent of U.S. renters could afford to become homeowners and in metros with highly competitive housing markets such as Los Angeles, CA, and Urban Honolulu, HI, this share was below five percent. Are U.S. home prices expected to fall? The median sales price of existing homes stood at 387,000 U.S. dollars in 2023 and was forecast to increase slightly until 2025. The development of the S&P/Case Shiller U.S. National Home Price Index shows that home prices experienced seven consecutive months of decline between June 2022 and January 2023, but this trend reversed in the following months. Despite mild fluctuations throughout the year, home prices in many metros are forecast to continue to grow, albeit at a much slower rate.

The average sales price of new homes in the United States experienced a slight decrease in 2024, dropping to 512,2000 U.S. dollars from the peak of 521,500 U.S. dollars in 2022. This decline came after years of substantial price increases, with the average price surpassing 400,000 U.S. dollars for the first time in 2021. The recent cooling in the housing market reflects broader economic trends and changing consumer sentiment towards homeownership. Factors influencing home prices and affordability The rapid rise in home prices over the past few years has been driven by several factors, including historically low mortgage rates and increased demand during the COVID-19 pandemic. However, the market has since slowed down, with the number of home sales declining by over two million between 2021 and 2023. This decline can be attributed to rising mortgage rates and decreased affordability. The Housing Affordability Index hit a record low of 98.1 in 2023, indicating that the median-income family could no longer afford a median-priced home. Future outlook for the housing market Despite the recent cooling, experts forecast a potential recovery in the coming years. The Freddie Mac House Price Index showed a growth of 6.5 percent in 2023, which is still above the long-term average of 4.4 percent since 1990. However, homebuyer sentiment remains low across all age groups, with people aged 45 to 64 expressing the most pessimistic outlook. The median sales price of existing homes is expected to increase slightly until 2025, suggesting that affordability challenges may persist in the near future.

The number of pending home sales in the U.S. declined dramatically in the fourth quarter of 2021. In March 2024, the pending home sales index stood at 78.2 index points, just 8.2 index points above its lowest value recorded in April 2020 when the COVID-19 pandemic struck. The slowdown in buying activity was triggered by the aggressive mortgage interest rates hikes in response to the rising inflation. As it takes around four to eight weeks to finalize a home sale in the United States, the Pending Home Sales Index (PHSI) index is seen as a measure of consumer sentiment on buying a house and essentially provides an early outlook on what the actual sales of existing homes in the country might potentially look like.

BR: Number of Residential Home Sales: Sao Paulo data was reported at 6,755.000 Unit in Jan 2025. This records a decrease from the previous number of 8,431.000 Unit for Dec 2024. BR: Number of Residential Home Sales: Sao Paulo data is updated monthly, averaging 2,613.000 Unit from Jan 2004 (Median) to Jan 2025, with 253 observations. The data reached an all-time high of 11,397.000 Unit in Oct 2024 and a record low of 622.000 Unit in Jan 2017. BR: Number of Residential Home Sales: Sao Paulo data remains active status in CEIC and is reported by The Trade Union of Housing. The data is categorized under Global Database’s Brazil – Table BR.RKA007: Real Estate: São Paulo Residential Home Sales. [COVID-19-IMPACT]

In a March 2020 survey, the development related to COVID-19 which had most affect home buying or selling plans in the United States was the drop in mortgage rates, which was cited by 34.1 percent of the respondents. Fear of recession and stock market volatility followed behind at 25 and 24 percent, respectively. For further information about the coronavirus (COVID-19) pandemic, please visit our dedicated Facts and Figures page.

Number of Offers for Sale: Secondary Housing: Orel Region data was reported at 1,124.000 Unit in Feb 2025. This records an increase from the previous number of 883.000 Unit for Jan 2025. Number of Offers for Sale: Secondary Housing: Orel Region data is updated monthly, averaging 1,901.500 Unit from Jan 2019 (Median) to Feb 2025, with 74 observations. The data reached an all-time high of 5,171.000 Unit in Oct 2019 and a record low of 878.000 Unit in Dec 2023. Number of Offers for Sale: Secondary Housing: Orel Region data remains active status in CEIC and is reported by Sberbank. The data is categorized under Russia Premium Database’s Business and Economic Survey – Table RU.SJ004: Number of Offers for Sale: Secondary Housing. [COVID-19-IMPACT]

Number of Offers for Sale: Secondary Housing: Omsk Region data was reported at 4,178.000 Unit in Feb 2025. This records a decrease from the previous number of 4,236.000 Unit for Jan 2025. Number of Offers for Sale: Secondary Housing: Omsk Region data is updated monthly, averaging 8,127.500 Unit from Jan 2019 (Median) to Feb 2025, with 74 observations. The data reached an all-time high of 14,122.000 Unit in Jan 2020 and a record low of 3,452.000 Unit in Dec 2024. Number of Offers for Sale: Secondary Housing: Omsk Region data remains active status in CEIC and is reported by Sberbank. The data is categorized under Russia Premium Database’s Business and Economic Survey – Table RU.SJ004: Number of Offers for Sale: Secondary Housing. [COVID-19-IMPACT]

Number of Offers for Sale: Primary Housing: Kostroma Region data was reported at 596.000 Unit in Feb 2025. This records a decrease from the previous number of 690.000 Unit for Jan 2025. Number of Offers for Sale: Primary Housing: Kostroma Region data is updated monthly, averaging 506.500 Unit from Jan 2019 (Median) to Feb 2025, with 74 observations. The data reached an all-time high of 1,078.000 Unit in Oct 2022 and a record low of 133.000 Unit in Jan 2021. Number of Offers for Sale: Primary Housing: Kostroma Region data remains active status in CEIC and is reported by Sberbank. The data is categorized under Russia Premium Database’s Business and Economic Survey – Table RU.SJ003: Number of Offers for Sale: Primary Housing. [COVID-19-IMPACT]

Over the course of the next two weeks from mid-February 2021, consumers in the United States intended to increase their spending on groceries and food for home by nearly 20 percent and household supplies by roughly four percent. Shoppers stated that they expected to decrease their spending for most product categories. Spending on jewelry and accessories was expected to be reduced the most over the measured period.

How was shopping behavior influenced by the pandemic?

Over the many weeks and months since the coronavirus (COVID-19) pandemic began, consumers around the world and in the United States had exhibited changes in their shopping behavior. In early 2021, specifically, an estimated 85 percent of American shoppers reported that the crisis impacted their usual shopping habits. Some of the changes seen over the past year included reduced spending, an increased interest in online shopping, the use of home delivery options, as well as a decreased convenience store shopping frequency.

What industries were hit the hardest?

During the first months of the coronavirus pandemic, consumers had spent far less than usual on all kinds of items, including out-of-home entertainment, apparel, jewelry, and accessories. Between March and May 2020, related sectors, such as motor vehicles and parts dealers as well as clothing and accessory stores, had seen a heavy decline in sales in contrast to the previous year. By the end of 2020 and the first months of 2021, however, many of the industries had once again experienced positive sales growth numbers.

For further information about the coronavirus (COVID-19) pandemic, please visit our dedicated Facts and Figures page.

Number of Offers for Sale: Secondary Housing: Smolensk Region data was reported at 1,317.000 Unit in Feb 2025. This records an increase from the previous number of 1,272.000 Unit for Jan 2025. Number of Offers for Sale: Secondary Housing: Smolensk Region data is updated monthly, averaging 2,537.500 Unit from Jan 2019 (Median) to Feb 2025, with 74 observations. The data reached an all-time high of 4,153.000 Unit in Oct 2020 and a record low of 1,168.000 Unit in Dec 2024. Number of Offers for Sale: Secondary Housing: Smolensk Region data remains active status in CEIC and is reported by Sberbank. The data is categorized under Russia Premium Database’s Business and Economic Survey – Table RU.SJ004: Number of Offers for Sale: Secondary Housing. [COVID-19-IMPACT]

Number of Offers for Sale: Primary Housing: Republic of Marii El data was reported at 1,225.000 Unit in Feb 2025. This records a decrease from the previous number of 1,705.000 Unit for Jan 2025. Number of Offers for Sale: Primary Housing: Republic of Marii El data is updated monthly, averaging 940.500 Unit from Jan 2019 (Median) to Feb 2025, with 74 observations. The data reached an all-time high of 2,626.000 Unit in Apr 2020 and a record low of 225.000 Unit in Mar 2022. Number of Offers for Sale: Primary Housing: Republic of Marii El data remains active status in CEIC and is reported by Sberbank. The data is categorized under Russia Premium Database’s Business and Economic Survey – Table RU.SJ003: Number of Offers for Sale: Primary Housing. [COVID-19-IMPACT]

Methods used to conduct sales or secure orders remotely prior to February 1, 2020, and on May 29, 2020, during the COVID-19 pandemic, by North American Industry Classification System (NAICS), business employment size, type of business, business activity and majority ownership.

Number of Offers for Sale: Primary Housing: Vladimir Region data was reported at 1,637.000 Unit in Feb 2025. This records a decrease from the previous number of 2,559.000 Unit for Jan 2025. Number of Offers for Sale: Primary Housing: Vladimir Region data is updated monthly, averaging 1,646.500 Unit from Jan 2019 (Median) to Feb 2025, with 74 observations. The data reached an all-time high of 4,145.000 Unit in Jun 2020 and a record low of 714.000 Unit in Apr 2022. Number of Offers for Sale: Primary Housing: Vladimir Region data remains active status in CEIC and is reported by Sberbank. The data is categorized under Russia Premium Database’s Business and Economic Survey – Table RU.SJ003: Number of Offers for Sale: Primary Housing. [COVID-19-IMPACT]

Number of Offers for Sale: Secondary Housing: Republic of Mordovia data was reported at 791.000 Unit in Feb 2025. This records an increase from the previous number of 734.000 Unit for Jan 2025. Number of Offers for Sale: Secondary Housing: Republic of Mordovia data is updated monthly, averaging 1,472.500 Unit from Jan 2019 (Median) to Feb 2025, with 74 observations. The data reached an all-time high of 3,124.000 Unit in Jun 2020 and a record low of 679.000 Unit in Dec 2024. Number of Offers for Sale: Secondary Housing: Republic of Mordovia data remains active status in CEIC and is reported by Sberbank. The data is categorized under Russia Premium Database’s Business and Economic Survey – Table RU.SJ004: Number of Offers for Sale: Secondary Housing. [COVID-19-IMPACT]