Summer Homebuying Season Defies Odds As Prices, Competition Heat Up
The summer homebuying season is heating up as demand skyrockets and home prices soar despite a global pandemic, a recession, and nationwide protests. Realtor.com reports that the median home prices rose 4.3 percent year over year. Low inventory and growing demand are keeping the prices high despite the economic downturn due to state shutdowns. Though the growth in the median home price is still below projected levels, economists say it is back at pre-pandemic levels. Cue an industry-wide sigh of relief. Still, many Americans are unemployed, have had their savings wiped out, or both. It will be a long road to recovery, but at least the housing market does not seem to be adding additional weight to the country’s baggage.
An official recession, a deadly pandemic, and a national reckoning on racism aren't blunting the housing market's rebound.
As the summer home-buying season gets underway, median home prices are surging. They shot up 4.3% year over year as the number of homes for sale continued to dry up in the week ending June 6, according to a recent realtor.com® report. That's correct: Prices are going up despite this week's announcement that the U.S. officially entered a recession in February.
While that's below the typical 5% to 6% annual price appreciation this time of year, it's nearly back to what it was before the coronavirus pandemic. Median prices were rising 4.5% in the first two weeks of March before the COVID-19 lockdowns began. Nationally, the median home list price was $330,000 in May, according to the most recent realtor.com data.