New Index Reveals Impact of COVID-19 on Real Estate

June 25, 2020

 

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.

 

“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.

 

Bottom Line
 

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.

 

 

Share on Facebook
Share on Twitter
Please reload

Featured Posts

Buyer Review

January 18, 2018

1/10
Please reload

Recent Posts

May 10, 2020

April 13, 2020

Please reload

Archive