The Housing Market During COVID-19: Supply Dips, Prices Rise
"Home sales may have slowed to a trickle, as much of the national economy shut down in the face of the coronavirus pandemic, but home prices did just the opposite," reports Diana Olick.
"Nationally, values rose 5.4% annually in April, a sharp increase from the 4.5% annual increase in March," adds Olick, citing data from CoreLogic.
The rising prices have coincided with a decline in supply, especially at the entry level into the market. "The inventory of entry-level homes for sale fell 25% in April from a year ago," explains Olick. Frank Nothaft, chief economist at CoreLogic, is quoted saying that the lack of supply is likely to contribute to rising housing prices through the spring.