In the latest report by realtor.com, the Housing Market Recovery Index reached 95.8 nationwide through June 27. Gaining 3.8 points, this is the largest weekly increase since the index was introduced, and also just 4.2 points shy of the pre-COVID figure.
“As the housing market plays catch up this summer, the ‘pace of sales’ continues to be the fastest improving index component, but remains below the full recovery baseline. The ‘new supply’ component is also on the path to recovery, while the ‘housing demand’ and ‘home prices’ components remain well above the January benchmark. A second wave of COVID-19 remains a short term threat to housing as the number of new cases reignites and states’ plans to re-open are re-evaluated,” said Javier Vivas, the director of economic research at realtor.com.
To break this metric/reading down, the overall index is set to 100 for the last week of January based on average year-over-year trends that month, and updated every week relative to that baseline. A value of 100 means the market has recovered to January 2020 pace. The higher the index value, the higher the level of recovery. The lower the index value, the lower the level of recovery.
As we’ve seen in the latest weeks, there’s been an ample amount of positive news coming from the housing sector. With some states toggling back of reopening this week and into the holiday weekend, it’ll be interesting to see if housing continues it’s upward trend.