Katie Canales/Business Insider
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A Realtor.com report shows the US housing market is still inching toward a post-COVID-19 recovery. While the national housing picture is “nuanced,” certain markets have recovered, getting scores over 100 on Realtor.com’s Housing Market Recovery Index.And these markets have something in common — they’re tech hubs with strong pre-pandemic job markets.Visit Business Insider’s homepage for more stories.
As the summer heat rises, so does buyer interest in the US housing market.A Realtor.com report looked at the 50 largest US metro areas and found both online home searches and asking prices surpassed pre-pandemic levels during the week ending June 13. More specifically, median listing prices were up 4.6% year over year, just above the growth pace last seen before the coronavirus outbreak.The increase in online home searches agrees with a Redfin report that found buyer demand jumped past pre-COVID-19 levels by 25% in the first week of June.And the five markets “leading the recovery,” according to Realtor.com, are all tech hubs. Each one surpassed its January growth pace in the week ending June 13, according to the report.National housing still hasn’t recovered to its levels from January by many metrics. Realtor.com’s Housing Market Recovery Index found listings were down 20% year over year and their time on the market was up 16 days compared with the second week of June 2019. The index reached 90, up 1.2 points from the week before but still 10 points below the January trend baseline. Realtor.com described housing’s recovery as “more nuanced” on a local level, with the markets corresponding with the relative strengths of local economies. According to the recovery index, areas with strong pre-pandemic job markets, particularly tech hubs, are weathering the recovery process the best.Javier Vivas, the director of economic research for Realtor.com, told Business Insider every US market included in the analysis was set to 100 on the index for the end of January to serve as the benchmark for pre-pandemic levels. If the market is above 100, growth has surpassed the pre-coronavirus pace, he said. “As more tech companies weather the storm, the stable jobs and incomes they offer will continue to power demand for homes in these areas, enabling home sales to bounce back faster than the rest of the country this summer,” Vivas said in the report. Here are the five tech hubs “leading the recovery.”
San Diego-Carlsbad, California
Realtor.com recovery index for the week ending June 13: 104.5Week-over-week change in recovery: 4.2%
San Francisco-Oakland-Hayward, California
Katie Canales/Business Insider
Realtor.com recovery index for the week ending June 13: 104.5Week-over-week change in recovery: 3.5%
Realtor.com recovery index for the week ending June 13: 106Week-over-week change in recovery: 6.9%
Boston-Cambridge-Newton, Massachusetts/New Hampshire
Realtor.com recovery index for the week ending June 13: 106.7Week-over-week change in recovery: 3.7%
Realtor.com recovery index for the week ending June 13: 107.6Week-over-week change in recovery: 2.2%
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