In the United States, the real estate boom is exacerbating inequalities

Washington (AFP) - The real estate sector is experiencing a new golden age in the United States in the midst of a pandemic, but the appetite for new and old homes is also pushing up prices to the point that more and more modest households are seeing their hope of home ownership soar.

"It's really a story of the haves and have-nots," said Dana Scanlon, real estate agent in the Washington DC area, the federal capital.

To cope with the economic crisis caused by the Covid-19 pandemic, the American Central Bank in March lowered its interest rates to almost 0.

"This has given real estate buying a big boost for people who have kept their jobs, who can work from home, who no longer need to come to the office," says Dana Scanlon.

In addition, wealthy households have been able "ironically" to save since the start of the pandemic, she adds.

With less spending on travel, cultural outings, or dining out, they were finally able to aim for bigger and more expensive goods.

The continued teleworking of white-collar workers and the closure of many schools across the country seven months after the start of the pandemic continue to boost demand.

The surge in sales, while the pandemic never ends, took professionals in the sector by surprise who did not forget the market collapse during the financial crisis of 2008-2009.

“There's kind of a pyramid of buyers,” says Dana Scanlon.Those who had a studio apartment are looking for a two-room apartment, those who have a two-room apartment want a house with a small garden and so on.

In October, sales of old homes reached their highest level since early 2006, according to the national federation of real estate agents, the NAR.

Posted Date: 2020-11-23

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