Key Highlights
- Realtor.com’s Housing Recovery Index indicates new high of $349,000 as national average median home price in July
- Listing price growth increased $27,000 y/y, +8.5%
- 48 of 50 largest metro areas had year-over-year median listing price gains in July
The national average median home price increased +8.5% y/y to a record high of $349,000 in July 2020.
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Not only has the COVID pandemic and its economic impacts hit every corner of the US, the virus and its associated economic effects are mirroring each other in timing and path. Realtor.com Chief Economist Danielle Hale said, “…(because the coronavirus) hasn’t hit every area equally or at the same time, the US housing market performance is closely mirroring COVID’s path, which is providing clues into what we can expect for various housing markets in the months to come.”
For example, COVID hit the Northeast hard in March and April but now that the infection rates remain stable and buyers are out in force. Will the same happen in the South and Midwest, two regions being hard hit now?
While COVID has and is continuing to wreak its havoc, 48 of the country’s 50 largest metros posted year-over-year median listing price gains in July. The only two metros seeing listing price declines in July were Miami-Fort Lauderdale-West Palm Beach at -1.5% and Orlando-Kissimmee-Sanford at -0.9%
Why did listing prices increase so substantially in July? Scarce inventory.
July was actually worse than June as national inventory sank -34.8% in July compared to June’s inventory percentage being -26.5%.
Not one of the markets areas realtor.com tracks saw an increase in inventory in July. The Riverside-San Bernardino-Ontario CA metro had the worst (largest) inventory drop at -50.4% over last year. Baltimore-Columbia-Towson MD (-48.7%) and Providence-Warwick RI-MA (-47.4%) weren’t far behind.
New listings in July were down -13.4% y/y. The Northeast (again, the correlation with COVID’s path) saw the least decline of listings with a drop of just -1.2%. New listings in the West were down -10% in July, -16.1% in the South and -20.8% in the Midwest.
Thanks to realtor.com and HousingWire.
Also read: The Hottest Markets Over Next Five Years, Investment Hotspots in 2019 & Beyond, eXp World Holdings Reports Revenue Increase of +33% in Q2 2020
