HouseCanary, Inc. (“HouseCanary”), a leading provider of residential property data and technology solutions to the world’s top lenders and real estate investors, today released a new report entitled “One Year Later: Understanding COVID-19’s Impact on the U.S. Housing Market.” The report can be downloaded and viewed here.
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HouseCanary tracks listing volume, new listings and median listing price information for 41 states and 50 individual Metropolitan Statistical Areas (“MSAs”). The data in today’s report represents an aggregation and summary of all single-family detached listing records in the HouseCanary database between March 2019 and March 2021.
Based on a thorough assessment of aggregated data, HouseCanary’s new report identifies that the following occurred during the first 12 months of the pandemic:
- There was a significant decrease in housing inventory. The U.S. experienced a 32.5% percent drop in housing supply from March 2020 to March 2021. This record decline was partially the result of rising costs of supplies, such as lumber, which have been hard to come by during the pandemic due to global supply chain issues.
- Homebuyer demand grew stronger. The number of listings under contract rose 4.6% during the first year of the pandemic, outpacing 2019’s figures. This spike in demand occurred as mortgage rates sat near historic lows, government relief arrived and millions of Americans yearned for more space in the new work-from-home environment.
- Americans moved faster than prior to the pandemic. Homes spent a median of 12 fewer days on the market compared to the same period the year prior. This was fueled, in part, by an increasing number of buyers chasing an ever-shrinking set of available inventory throughout 2020.
- Prices soared. Across the U.S., the median listing price increased by 15.0% while the median closing price jumped 18.7% from March 2020 to March 2021. During the same period, the median listing price per sq ft increased by 19.0% and the median closing price per sq ft rose 17.5%.
Chris Stroud, Co-Founder and Chief of Research, and Brittany Murphy, Principal Data Scientist, commented:
“HouseCanary’s new report highlights that the pandemic has created an unprecedented supply imbalance in the U.S. housing market. Although most crises tend to trigger a surge in listings for sale and downward pressure on prices, the past year saw many homeowners sit on their equity while eager homebuyers bid up the market. Our analysis suggests that increased household formation in suburban areas and more work-from-home opportunities may perpetuate this supply-demand discrepancy for the foreseeable future.”
Additional findings can be reviewed in the full report here.
About HouseCanary
Founded in 2013, valuation-focused real estate brokerage HouseCanary provides software and services to reshape the real estate marketplace. Financial institutions, investors, lenders, mortgage investors, and consumers turn to HouseCanary for industry-leading valuations, forecasts, and transaction-support tools. These clients trust HouseCanary to fuel acquisition, underwriting, portfolio management, and more. Learn more at www.housecanary.com or by e-mailing info@housecanary.com.
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