However, even during such a global catastrophe, the housing market is still doing fine. How is it possible?

Housing Prices Explained

At the onset of the pandemic the housing market took an initial downturn as well. However, in recently it appears that things are gradually moving in a positive direction.

The US Commerce Department recently reported that there is a rise in the sale of new homes along with an increase in sale prices. Data from a number of sources highlights that the demand for houses is gradually increasing.

Typically, the spring season each year sees a boost in the sale of housing. This year however, many sellers initially pulled their homes off the market out of fear of a potential drop in price as the pandemic broke – with plans to wait until things returned to normal.

At the same time, many buyers retreated because they did not want to spend money with potential job loss looming. Listings dropped by more than 70% in many areas.

Data collected recently shows that the states where lockdown was extremely strict and the cases were higher, they have taken a bigger plunge and are on the road to recovery much slower than states that had lower cases and a more eased lockdown.

So How is the Market Still Doing Well?

It all boils down to economics and the laws of demand and supply. When the pandemic was new both of these decreased. However, now both demand and supply are slowly and steadily rising.

Data shows that buyers are much more eager to return than the sellers. This means more demand and less supply, keeping the prices fairly stable.

The post U.S. Housing Prices Stable Despite the Corona Virus Pandemic appeared first on CitizenNewsWire.