New Index Reveals Impact of COVID-19 on Real Estate

Dated: 06/27/2020

Views: 1

New Index Reveals Impact of COVID-19 on Real Estate

New Index Reveals Impact of COVID-19 on Real Estate | MyKCM

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.New Index Reveals Impact of COVID-19 on Real Estate | MyKCMIt’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.

Blog author image

KEVIN BASS

Today's Buyers & Sellers need a trusted resource that can guide them through the complex world of Real Estate. With our extensive community and market knowledge, high-quality professional network, and....

Latest Blog Posts

America Is Another Name for Opportunity

America Is Another Name for Opportunity;

Read More

Is the Health Crisis Driving Buyers Out of Urban Areas?

Is the Health Crisis Driving Buyers Out of Urban Areas?The pandemic has caused consumers to re-examine the components that make up the “perfect home.” Many families are no longer

Read More

A Historic Rebound for the Housing Market In 2020

A Historic Rebound for the Housing MarketPending Home Sales increased by 44.3% in May, registering the highest month-over-month gain in the index since the National Association of Realtors;(

Read More

Are New Homes Going to Be Available to Buy This Year?

Are New Homes Going to Be Available to Buy This Year?In today’s economy, everyone seems to be searching for signs that a recovery is coming soon. Many experts agree that it may actually

Read More