Impact of COVID 19 on Real Estate

by kevinjones on June 24, 2020

in Latest News

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:

20200625 KCM Share 300x164 Impact of COVID 19 on Real Estate

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  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.20200625 NM ENG Impact of COVID 19 on Real EstateIt’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.

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.

Realty Professionals Round JPG Impact of COVID 19 on Real Estate

Realty Professionals 805-473-0300

 

 

 

 

 

 

 

 

 

Kevin Jones, Broker, Lic#01128892, Since 1992
Realty Professionals, Lic#01892221, a California corporation
805-473-0300

 

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Post by Kevin Jones

Realty Professionals 805-473-0300 791 Price Street Suite 191 Pismo Beach Ca 93449

Kevin has written 448 articles.



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