3 minute read
The Housing Market Per State
WHAT THE HOUSING MARKET LOOKS LIKE IN EVERY STATE
Despite the global pandemic as a backdrop, home sale prices went up all across the country in the past year. At the start of the coronavirus pandemic, no one could have predicted what would happen with the housing market. Typically, in a recession, home prices fall and people stay in their homes. The opposite occurred in the fall of 2020. As more and more office workers were given the green light to work remotely, some for an indefinite time period, and mortgage interest rates hit an all-time low, real estate sales spiked in almost every region of the country.
But how long will this housing boom last, and which states are feeling its effects the most? Sundae used data from the U.S. Census Bureau’s 2019 American Community Survey 1-Year Estimates (released in December 2020) and its own 2021 internal data on current housing market trends to compile a list of statistics that show what the housing market looks like in every state. These stats cover what types of homes exist in every state, how many people are owning or renting homes, the value of homes, and how many homes have been on the market over the past couple of months (it’s important to note that some of this data is constantly changing due to the pandemic).
Our featured states this month: Texas, Arizona, Idaho, and Nevada
Polina is Sr. Director of Research & Lead Economist, Sundae. She is a Real Estate Economist with more than 15 years of valuation experience across commercial and residential real estate. Her background includes stints with Cushman & Wakefield, Hanley Wood, and Standard & Poor’s. Polina graduated with a double major in Economics and International Relations from the University of California at Davis and has been a CAIA Charter Holder since 2010.
TEXAS
Texas had a very strong 1Q 2021 with 10% increase in closed sales. This is despite the winter storm Uri, which made its way across the state bringing power outages and bursting pipes leaving people without water and electricity for days. Delivery of new homes also stalled because of the storm further exacerbating the supply issue. Average days on market are at all-time lows. Activity will continue to shift toward homes priced over $300K due to lack of inventory at lower price levels and increasing building costs.
ARIZONA
Arizona is one of the hottest real estate markets in the country. Median home prices increased 19.8% since April of last year. Supply is down to under 2 weeks. The demand for largest Arizona metros was there before the pandemic and has only increased since. Native Arizonians, who are priced out of the market by massive price growth are blaming migrating neighbors for driving prices up, but with strong population growth of the state and large local universities producing strong wage earning talent, Arizona has been underbuilt for a long time. Seller’s market is here to stay.
IDAHO
Idaho became the top state in 2020 for inbound moves according to United Van Lines annual study. Top reasons were retirement, followed by jobs and lifestyle, or in a nutshell, affordability. Boise was ranked # 4 best place to live by U.S News & World Reports. According to Freddie Mac HPI, 3 of the top 5 fastest growing real estate markets in the country are in Idaho. With the home price appreciation in the 20% ‘s, the relatively low cost of living compared to its neighboring states may stop being the case in coming years.
NEVADA
Nevada is heavily reliant on the tourism industry and as a result, was hit the hardest of all 50 states by the pandemic. Amid the lockdown, Las Vegas’ luxury real estate sector was doing particularly well, while other segments lagged behind the national double-digit appreciation boom. As Nevada’s labor markets are beginning to recover, pending home sales are showing an exponential growth. Once pandemic stops causing disruptions for business entirely, the Nevada housing market can be expected to outperform the national averages.
