Earlier this month, realtor.com announced the release of their initial Housing Recovery Index, a weekly guide showing how the pandemic has impacted the Boston residential real estate market. The index leverages a weighted average of four key components of the housing industry, tracking each of the following:
- Housing Demand – Higher growth in online search activity
- Home Price – Higher growth in asking prices
- Housing Supply – Growth of new listings
- The pace of Sales – Difference in time-on-market
The index then compares the current status “to the last week of January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market’s index value, the higher its recovery and vice versa.”
The graph below charts the index by showing how the real estate market started out strong in early 2020, and then dropped dramatically at the beginning of March when the pandemic paused the economy. It also shows the strength of the recovery since the beginning of May. It’s clear to see that the housing market is showing promising signs of recovery from the deep economic cuts we experienced earlier this spring.
“As the nation reopens, housing is well-positioned to lead the economy forward.”
The data today indicates the Boston condo for sale market is already on the way up.
Boston Real Estate and the Bottom Line
Staying connected to the Boston condo market’s performance over the coming months will be essential, as we continue to evaluate exactly how the housing market is doing in this uncharted time ahead.
