Austin Texas ranks 9th place on Realtor.com’s list of most recovered housing markets amid the pandemic.
Nationally, demand for housing is above baseline levels, and recent data from the Mortgage Bankers Association proves as much. Last week, applications for purchase loans were up 13% over the year and 15% over the week. It was the eighth straight week that applications jumped.
As Realtor.com’s Javier Vivas explains, “Homebuyer interest recovered quickly post COVID-19 and remains high despite the weaker economic environment, as low mortgage rates, virtual tools and lockdown lifts have enabled many buyers to continue the home search process, albeit often with adaptations. Housing remains an essential good, and this activity demonstrates that real estate can remain fairly active even during recessionary periods.”
The numbers certainly point toward recovery for the housing market, but real estate is local, and some metros are showing much stronger signs of recovery than others.
Recovery by market goes as:
In terms of prices and inventory, home prices had slowed down in recent months (they never outright declined), it appears that trend has ended. Realtor.com shows prices up 4.3% in the last week, up from a 3.7% growth rate in January.
According to Danielle Hale, chief economist at Realtor.com, prices could go even higher if more supply doesn’t hit the market soon. It’s one area that’s recovering—just not at as fast a clip as other indicators. New listings are down 21% over the year and 12.7% below January’s numbers.
“The general sentiment from consumer surveys is that now is not a good time to sell a home because of COVID, economic uncertainty and social unrest, but the data is saying the opposite,” Hale says. “Home prices are back to their pre-COVID pace and we're seeing listings spend slightly less time on the market than last week. But the housing market still needs more sellers in order to meet the surge in demand. Looking forward, if we don’t get the inventory we need, we'll see prices rise even more and homes sell faster later this summer.” as reported by Forbes.com.
According to the Market Recovery Index from Realtor.com, both housing demand and home prices are above January’s pre-COVID levels, and housing supply and overall sales are now following a recovery trajectory.
About the writer: Shaura Cuyan writes about all the hottest Real Estate trends and predictions for Summit VA Solutions! She has previously written for a number of freelancing gigs and writes her own blog on lifestyle and current issues. She is a Graduate of Bachelor of Arts in Communication, taking up her Masters in Development Communication.