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Millennials represent the largest share of homebuyers today. They were poised to play a major role in the housing market heading into the pandemic with large numbers expected to either purchase their first home or trade up. In our most recent blog post, we explore the latest data to see how COVID-19 has impacted their plans and where opportunities lie for investors.
HousingWire reports demand for houses continues to skyrocket. A recent report from Redfin shows seasonally adjusted demand for houses during the week of June 1 through June 7 was 25% above pre-pandemic levels.
Sale prices also increased, up 3.1% year over year. In more good news for sellers, the percentage of newly listed homes to accept an offer within 14 days increased from 42% in May to 47% in June. Although listings are still down 15% year over year, the trend is improving.
In an article for CNN Business, Lawrence Yun, National Association of Realtors®️ Chief Economist, observed that “as more Americans get back to work, we are starting to see both buyers and sellers returning to the market, creating the beginnings of what we believe is a V-shaped recovery in the housing sector.” Yun goes on to discuss the state of buyer demand, the current housing shortage, and what it all means for those who are most adversely affected by the coronavirus pandemic.
Redfin reports online searches for single-family homes rose to the highest level in four years last month. “People who were previously willing to share space with strangers in exchange for a nice view and a quick commute now want their own yards and home offices,” observed Redfin lead economist Taylor Marr. “Flexible work-from-home policies have made this dream achievable for many house hunters.”
Last week, Realtor.com introduced its new weekly Housing Market Recovery Index. The index aims to track the U.S. housing recovery nationally and in the 50 largest metropolitan areas.
The index is calculated as a weighted composite of four components, including “housing demand,” which tracks growth in online search activity; “home price,” which tracks the growth in asking prices; “housing supply,” which tracks the growth of new listings; and “pace of sales,” which tracks differences in time-on-market. Read on for the market recovery recap released today covering the week ending June 13th.
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