Housing Market Immunity: V-Shaped Recovery & Home Equity Growth
Explore the resilience of the housing market amidst the pandemic, with a V-shaped recovery and surging home prices. Homeowners are gaining equity, fueling a potential growth in family wealth over the next five years. Dive into the latest trends and projections in the real estate sector.
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Presentation Transcript
Since hitting a low point during the initial stages of the pandemic, the only major industry to display immunity to the economic impacts of the coronavirus is the housing market. Housing has experienced a strong V-shaped recovery and is now exceeding pre-pandemic levels. Mark Fleming Chief Economist at First American
Year-Over-Year Change in Listings 10% Total Listings New Listings 5% 0% Early March 5/30 6/6 6/13 6/20 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/15 8/22 8/29 9/5 9/12 9/19 -5% -10% -15% -20% -25% -30% -35% -40% -45% move.com
Existing Homes New Homes Census National Association of Realtors 43% 10.5% Sales Listings Sales Listings -33% -39%
Since the beginning of the COVID pandemic in March, nearly 400,000 fewer homes have been listed compared to last year, leaving a gaping hole in the U.S. housing inventory As a result, home prices are accelerating at double last year's pace. realtor.com
As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home the wealth effect of rising equity. In today s housing market, fast rising demand against the limited supply of homes for sale has resulted in continued house price appreciation. Mark Fleming Chief Economist at First American
Q2 2020 YOY Homeowner Equity Gain CoreLogic
$50,859 potential growth in family wealth over the next five years based solely on increased home equity $361,459 $349,912 $339,720 $330,789 $322,092 $310,600 Increased home equity based on price appreciation projected by the Home Price Expectation Survey January 2020 January 2021 January 2022 January 2023 January 2024 January 2025 Home Price Expectation Survey 2020 3Q
