Median home prices in the U.S. have risen 14.3% since the World Health Organization declared Covid-19 a pandemic a year ago, according to a report Thursday from realtor.com.
The push for more space and a desire for affordable homes has led to a quick recovery for the country’s property market, according to realtor.com’s chief economist Danielle Hale.
“The housing market bounced back so much faster than other sectors of the economy that many have forgotten that housing activity slowed to a crawl during the early days of the pandemic,” she said in a statement. “One year later, the demand for housing remains strong, while supply remains limited.”
Indeed, as of the week ending March 7, new listings had fallen 27% compared to the same time last year, the data showed. Total inventory dropped 51% in the same time period, and there are nearly 500,000 fewer homes on the market than there were in March 2020.
Across the U.S., 32 of its 50 markets have surpassed realtor.com’s recovery benchmark in the week ending March 6. The greatest recovery has been registered in the cities of Austin, Denver, Riverside, Portland and Phoenix.
Limited supply, low mortgage rates and the continued demand to get out of cities has also meant homes are selling an average of six days faster than they did last year, the report found.
“In an environment where the number of homes listed for sale is limited and affordability is becoming more of a concern for many, the competition to find the home of your dreams is greater than ever,” said realtor.com CEO David Doctorow in a statement.
However, that could change soon.
“The housing market’s lopsided momentum could ease in the coming months,” Ms. Hale predicted in the report. “We expect the vaccine’s rollout to alleviate some sellers’ anxieties, which could help the supply crunch. At the same time, although interest rates remain low, they’ve begun to increase, which could test buyer demand in the coming months.”
Article Source: Mansion Global