How Has Covid-19 Impacted The Real Estate Industry?
COVID-19 Impact on Real Estate reported in New Index
Realtor.com announced the findings in its initial Housing Recovery Index, a guide that comes out each week reporting the impact on the real estate housing market because of the Covid-19 pandemic. The index ranks a weighted average focusing on four key factors of the housing industry, following each of the following:
*Housing Demand – Increase in search activity online
*Home Price – Increase in property asking prices
*Housing Supply – Increase in the amount of new inventory
*Pace of Sales – Difference in time-on-market
The index then looks at the current status comparing it “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.”
In the graph below, you can see how strong the real estate market started out at the beginning of this year, and then significantly decreased in the early days of March when the economy was paused due to the Covid-19 virus. It also reports how strong the economy rebounded in the early part of May.
What The Index Shows
It’s very evident to conclude that the real estate housing market is starting to show encouraging signs of recovery from the severe economic cuts we experienced at springtime. Dean Mon, Chairman of the National Association of Home Builders (NAHB) expressed,
“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.
Keeping an eye on the housing market’s performance over the next several months will be crucial, as we continue to measure how the housing market is holding up in this unprecedented time ahead.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. John Sabia, Coldwell Banker and Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. John Sabia, Coldwell Banker and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.