COVID-19 and the economy have led to disruptions in the real estate market. Earlier this month, realtor.com® launched the Housing Recovery Index, a weekly guide that shows the housing market continues to recover even in cities experiencing civil unrest.
The index uses four key components of the housing industry, tracking each of the following and compares it to the January 2020 market trend, as a baseline for pre-COVID market growth:
1. Search Traffic – Housing Demand
2. Median List Prices – Home Price
3. New Listings – Housing Supply
4. Median Time on Market – Pace of Sales
Real Estate Market Recovery Index
The graph below shows 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.
The index also reveals the recovery trend was not impacted in the 11 markets that saw the largest number of protests the week ending June 6. Of the 11 markets, 6 areas saw slight increases in their weekly recovery index:
• Atlanta (+1.5 points)
• Chicago (+4.7 points)
• Cleveland (+3.3 points)
• Los Angeles (+0.2 points)
• Minneapolis (+0.3 points)
• New York (+4.9 points)
Five saw a slight decrease in their weekly recovery index:
• Dallas (-2.0 points)
• Louisville, Ky (-2.1 points)
• Raleigh (-0.7 points)
• St. Louis (-0.9 points)
• Washington, D.C. (-1.1 points).
Danielle Hale, Chief Economist for realtor.com, said, “The general sentiment from consumer surveys is that now is not a good time to sell a home because of COVID, economic uncertainty, and social unrest, but the data is saying the opposite. Home prices are back to their pre-COVID pace and we’re seeing listings spend slightly less time on the market than last week.”
If you are looking to sell or buy a home, contact a Real Estate Agent at Wenzel Select Properties. Our real estate office is located at 4941 Main Street in Downers Grove, Illinois. Call our office at (630) 430-4790 or contact us by email.