Earlier this month, realtor.com announced the release of their initial Housing Recovery Index, a weekly guide showing how the pandemic has impacted the residential real estate market. The index leverages a weighted average of four key components of the housing industry, tracking each of the following:
1. Housing Demand – Growth in online search activity
2. Home Price – Growth in asking prices
3. Housing Supply – Growth of new listings
4. Pace of Sales – Difference in time-on-market
The index then compares the current status “to the last week of January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market’s index value, the higher its recovery and vice versa.”
The graph below charts the index by showing how the real estate market started out strong in early 2020, and then dropped dramatically at the beginning of March when the pandemic paused the economy. It also shows the strength of the recovery since the beginning of May.
It’s clear to see that the housing market is showing promising signs of recovery from the deep economic cuts we experienced earlier this spring. As noted by Dean Mon, Chairman of the National Association of Home Builders (NAHB):
“As the nation reopens, housing is well-positioned to lead the economy forward.”
The data today indicates the housing market is already on the way up.
Staying connected to the housing market’s performance over the coming months will be essential, as we continue to evaluate exactly how the housing market is doing in this uncharted time ahead.
Thinking of Buying or Selling?
I hope you are staying safe during this coronavirus outbreak. My team and I are working around the clock to make sure that we are up to speed on how the Stay-At-Home Orders are affecting the Real Estate Market with new showing protocols and new coronavirus disclosures for every listing. Now more than ever, MARKET KNOWLEDGE and OVER 40+ YEARS of EXPERIENCE will help you navigate the new normal and achieve your Real Estate goals. Call for virtual listing appointments, price opinions and COVID approved showings.
Mary Beth Woods
Call Mary Beth Woods (310) 571-1358