A Look At The Market One Year Into COVID
The housing market has done pretty well in the year since the coronavirus' onset. Following an initial slowdown, home buyers bounced back in the months after the pandemic began. Then, the market benefited from record low mortgage rates and remote work – which helped fuel Americans' interest in making a move.
As a result, buyer demand surged and stayed high through the end of 2020 and into 2021. But while most measures of the market show it now surpassing pre-pandemic levels, new listings are one that continues to lag.
In fact, according to a new report from the National Association of Realtors' consumer website, new listings were nearly 30 percent lower than last year at the beginning of March. And when the number of available homes falls that far behind the number of interested buyers, price increases accelerate.
Fortunately, Danielle Hale, the website's chief economist, says the gap between supply and demand should ease in the months ahead. “The housing market's lopsided momentum could ease in the coming months,” Hale said.
“We expect the vaccine's rollout to alleviate some sellers' anxieties, which could help the supply crunch.” As that happens, and the market becomes more balanced, prices and competition should begin to wane.