The COVID 19 pandemic decimated the real estate sector like other parts of the US economy. Home sales and new home starts plummeted from their pre-pandemic highs. Real estate data for the month of July was reported in the last week and it was fairly encouraging.
To give you a more panoramic view, here is a chart which shows housing starts, new home sales, and existing home sales over the past 10 years.
As you can see, after the severe drop earlier this year, all of these metrics are higher than they were before. This is very good news for the economy!
This chart shows the last ten years of data. As you can see, the July data is better than any time in the last ten years. Before too much excitement is taken at this, the Great Recession with it’s housing crisis in 2007-2009 saw all these levels take a huge decline. As the economy recovered from that recession housing was very slow in its growth compared to the rest of the economy.
Regardless, it is quite encouraging that any metric in the economy is better than before the pandemic hit. Hopefully this is not a one month blip and that full recovery in other parts of the economy follow.