COVID-19 and the Housing Recovery Index
There are obviously numerous questions circulating regarding the impact Covid-19 is having or will have on the housing market. To aid in answering these questions realtor.com has announced that it will be releasing a Weekly Housing Recovery Index. This weekly guide will detail how the pandemic is influencing America's real estate market using the most recently available data.
The index leverages a weighted average of four key components of the housing industry, tracking each of the following:
- 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
It is by averaging these 4 components that we can compare the current status with the status at the last week of January 2020.
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 supplies us some reassurance to realize that the housing market is showing promising signs of recovery from the deep economic cuts we experienced earlier this spring. Dean Mon, Chairman of the National Association of Home Builders agrees noting that, “As the nation reopens, housing is well-positioned to lead the economy forward.”
Keeping Informed About the Grays Harbor Market
Clearly, the data today shows the housing market is already on the way up. 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. Our friendly team of professionals at Oly Pen Real Estate in Montesano, WA are equipped the skill, knowledge, and resources, you need to stay informed. If you have time we encourage you to check our our July 2020 Market Review. Designated Broker Jason Atwood goes into details about what to expect in Grays Harbor. We are happy to serve you!