New data from Black Knight’s Collateral Analytics shows single-family home prices in major U.S. metro areas have rebounded since declines in mid-March and April resulting from fallout of the COVID-19 pandemic.
Collateral Analytics leveraged data from its Daily Home Price Flash for 22 metro areas in geographically diverse regions across the country. This analysis showed that 18 of the researched metros saw increases in the median sold prices of single-family homes from March 2020 to June 2020.
Additionally, Collateral Analytics created a home price index (HPI) that analyzed the median sold prices of single-family homes in the same 22 markets, beginning in January 2020, and showing changes through June 1. This HPI demonstrates that despite drops in March and April, home prices have since performed well and begun to improve in most analyzed markets.
During the initial peak of the pandemic in mid-March and April, New York City found itself as the epicenter, negatively impacting the metro area’s real estate market. During this time, median listing prices for single-family homes dropped considerably as the region faced mandatory shutdowns and business closures.
Typically, list prices of single-family home average five percent higher than the corresponding sales prices — often the result of sellers adding a price “buffer” for negotiations with potential buyers. However, during the pandemic’s peak in New York City, median list prices ran even — and at times below — median sale prices in the metro area.
As depicted in the chart, by the end of April, median list prices in the New York City metro area began to recover. By May, they stabilized to pre-pandemic levels of about five percent above the median sale price.
Despite the pandemic’s continued impacts on global economies, the U.S. real estate market has shown its resilience thus far and continues to perform well.
Black Knight’s Collateral Analytics will provide bimonthly snapshots of home sales and price information for major U.S. markets via this blog.