How Is Demand Responding to Current Housing Market Conditions?
With all the signs of economic slowdown, it does not take an industry expert to know that the coronavirus is negatively impacting home sales. But getting a handle on the entire impact of the virus on the market is a bit more complex. For example, the homeownership rate might rise after the coronavirus, but not necessarily because more people are buying houses. Instead, young adults may move in with more roommates or back home, reducing the number of renter households. See what other effects current market conditions may have in the coming months.
Home-price growth accelerated in February to its highest level in more than a year, but the housing market’s momentum headed into the spring-selling season has been reversed in recent weeks by the coronavirus pandemic.
The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 4.2% in the year that ended in February, up from a 3.9% annual rate the prior month. February marked the highest annual growth rate since January 2019.
The data, which was released Tuesday, is the latest indication that the housing market was set for a robust spring-selling season before the pandemic due to a strong job market at the time and low mortgage rates.