Sign in Subscribe
Housing

The Post-COVID-19 Housing Market: Sellers Must Know the New Normal

Strategic Insights

— 1 min read

As the COVID-19 pandemic slowly recedes into memory, the housing market has undergone significant changes, shifting from a seller's paradise to a more balanced landscape. The pandemic-induced homebuying rush, characterized by frantic bidding wars and high prices, has given way to a more stable, albeit still seller-friendly, market. According to Realtor.com(r) Chief Economist Danielle Hale, the pandemic experience dramatically changed the way people lived, worked, and interacted, leading to a surge in demand for larger, more functional homes.

Key Takeaways:

  • The pandemic fueled a homebuying rush, with properties getting snapped up fast, often within days of going on the market, and buyers waiving inspections and offering above the asking price.
  • The housing market has profoundly changed since the pandemic, with high home prices and rising mortgage rates affecting demand and making it more challenging for buyers to secure a home.
  • Despite rising interest rates and cooling demand, the total housing supply was still down 35.9% in April compared to typical levels from 2017 to 2019, indicating a seller's market still prevails.
  • Sellers have the advantage, but personal circumstances, including life changes and purpose-driven moves, should guide their decision-making.
  • Home prices have ebbed from a record high of $449,000 in June 2022 to a median of $430,000 in April, while home prices have surged from $342,000 in June 2020, pushing homeowner equity to record-high levels.
  • Mortgage rates have more than doubled over the past few years, from the 3% to 7% range, making it more challenging for buyers to secure a home and affecting demand.

Statistics:

  • Median home list price: $449,000 (June 2022) and $430,000 (April) (94% increase from $342,000 in June 2020)
  • Total housing supply: down 35.9% in April compared to typical levels from 2017 to 2019
  • Mortgage rates: more than doubled over the past few years, from 3% to 7% range
  • Owner equity: at record-high levels due to high home prices and rising mortgage rates

Sources:

  • Realtor.com(r) Chief Economist Danielle Hale
  • Jason Gelios, real estate agent with Community Choice Realty in Southeastern Michigan
  • Chad Carroll with The Carroll Group at Compass in South Florida
  • Beatrice de Jong, consumer trends expert at Opendoor

Read more