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.
- Housing Demand — Growth in online search activity
- Home Price — Growth in asking prices
- Housing Supply — Growth of new listings
- 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. Simplifying The Market” width=”650″ height=”488″ srcset=”https://files.simplifyingthemarket.com/wp-content/uploads/2020/06/23164458/20200625-MEM-ENG.jpg 1000w, https://files.simplifyingthemarket.com/wp-content/uploads/2020/06/23164458/20200625-MEM-ENG-400×300.jpg 400w” dimensions=”(max-width: 650px) 100vw, 650px”>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 this National Association of Home Builders (NAHB):
“As the nation reopens, home is well-positioned to lead the market forward. ”
The data today suggests the housing market is already on the way upward.
Staying attached to the home market’s operation within the coming months will be essential, as we continue to evaluate how the home market is doing in this period ahead.
This post was originally posted on Simplfy the Market