New Index Reveals Impact of COVID-19 on Real Estate

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.

 

 

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.

 

 

 

 

Please reload

Featured Posts

I'm busy working on my blog posts. Watch this space!

Please reload

Recent Posts
Please reload

Archive
Please reload

Search By Tags
Please reload

Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

© 2020 by Chris Dudley

Realtor, and TEAM LEADER of the Dudley Real Estate Group, with Berkshire Hathaway Home Services PenFed Realty

The Dudley Real Estate Group - Licenced in WV, VA, MD & DC    What is my home worth? Click here to get a FREE VALUATION

Chris Cell (202) 297.3047 | Chris@DudleyREGroup.com

--

Tysons Central Office Address - 8075 Leesburg Pike, Suite 720, Vienna, VA 22182  |  Office Phone: (703) 281-8500  |  Fax: (703) 214-2104

​© 2012-2019 by CHRIS DUDLEY with Berkshire Hathaway Home Services - Building Relationships.... NOT just selling!

  • Twitter Social Icon
  • Facebook Social Icon
  • YouTube Social  Icon
  • Google+ Social Icon
  • LinkedIn Social Icon