Currently Reading

Has the Virus Resurgence Affected the Housing Market's Recovery?


Has the Virus Resurgence Affected the Housing Market's Recovery?

July 20, 2020
Aerial view of suburban neighborhood
By Mark

COVID-19 cases have surged recently, and it has already impacted the housing industry. For the week ending July 12, the amount of listings under contract dropped 15.3% nationally compared to the previous week, according to Forbes. The drop brought the industry down to a level unseen since mid-May, but numbers remain higher than the lowest point in April. HouseCanary, a residential real estate valuation company that conducted the market report, says the virus resurgence may impact the chances of a V-shaped recovery. The contract volume for properties priced $200,000 and below decreased by 11.9%, whereas homes priced between $400,000 and $600,000 dropped 18.1%. 

The overall decrease corresponds with the latest reading of the Mortgage Bankers Association’s seasonally adjusted mortgage purchase index, which declined 6% in the week ending July 10 (following waning gains, punctuated by small drops, in the last month or so). After several weeks of seemingly frenzied shopping, which in some cities resulted in bidding wars, home buyers now appear to retreat from the national real estate market.

“The spring-summer buying season has been extended out because of the shelter-in-place,” rules earlier this year, Sicklick says. “But we're seeing these real declines in properties going under contract in all of the major markets where Covid-19 is surging.”

Read More

Related Stories

Market Data + Trends

Did the Pandemic Cause Current Housing Trends or Accelerate Them?

As interest in suburban living grows, it begs the question: is this entirely a result of the pandemic, or has the pandemic accelerated already…

Market Data + Trends

More Buyers than Average are Purchasing Suburban Properties

The shift from urban centers to less dense areas continued on through October, according to the National Association of Realtors (NAR). For those…

Market Data + Trends

Is Urban Flight to the Burbs Golden?

The future of urban and suburban housing post-COVID-19


More in Category


Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.