Why Are Some Housing Markets Recovering Quicker Than Others?
Amid some of the darkest days in recent American history, the housing market is quietly recovering. Mortgage applications are increasing as people gear up to buy homes after a near freeze on buying in the early stages of the pandemic. But not all cities are recovering at the same pace: Forbes reports that lockdowns, number of COVID-19 infections, and the health of the job market before and during the pandemic are all factors in the rebound’s speed and strength. Some cities, such as Seattle, had strong enough economies to shoulder through large coronavirus outbreaks. See how cities near you have fared.
As mortgage applications, price appreciation and slowly growing new listings indicate that the national real estate industry is finally mending from the coronavirus, some housing markets are charting faster and stronger recoveries than others.
The reasons why some cities are bouncing back quicker boil down to robust local economies, less severe coronavirus-prompted lockdowns and, in some cases, low numbers of COVID-19 infections.
“A lot of markets across the country [suffered],” says Taylor Marr, lead economist at real estate brokerage Redfin RDFN. “We saw about 50% drop on the sell side and about a 50% drop in homes going under contract. That was pretty true for the most part in most places around Easter.
“The difference has been the road to recovery. Some places have had a sharper rebound. There’re also a few markets that weren't hit as hard initially.”