Housing Markets That Have Fully Recovered From the Pandemic

The tumultuous wave of the COVID-19 pandemic swept across the housing market landscape, leaving in its wake a trail of unprecedented shifts. From soaring home prices to dwindling inventory levels, the real estate arena underwent a dramatic transformation as individuals and families embarked on journeys of relocation and adaptation.

However, amidst this flux, there are pockets of resilience—housing markets that have not only weathered the storm but have emerged stronger, with inventory levels surpassing pre-pandemic benchmarks. According to a recent report by Realtor.com, four cities stand out as beacons of recovery, boasting higher inventory levels in March than the years spanning 2017 to 2019.

Where Recovery Takes Root

San Antonio leads the charge with a remarkable surge of 27.1% in homes for sale, closely followed by Austin, TX, with 18.1%. Not far behind are Dallas and Denver, each witnessing respectable growth rates of 4.6%.

Chief Economist at Realtor.com, Danielle Hale, sheds light on this shift, particularly noting the Central Texas markets’ resurgence. She remarks, “Central Texas markets have seen sufficient inventory recovery to be back to pre-pandemic levels over the past few months, and they’ve recently been joined by Denver. This shift reflects not only the cooling these markets have seen recently, but also that they were relatively in-demand areas even before the pandemic.”

Unveiling the Reasons Behind Recovery

The resurgence in housing supply in these select cities can be attributed to a confluence of factors.

• Mortgage Rate Dynamics: As mortgage rates climbed to generational highs last year, many homeowners found themselves hesitant to relinquish their existing low rates. However, persistent demand may have finally incentivized some to capitalize on their home equity, facilitating downsizing or relocation.
• Adaptation in Construction: The construction industry, faced with challenges precipitated by the pandemic, has adapted remarkably. Addressing supply chain disruptions and accelerating build timelines, construction firms have risen to the occasion, contributing to the influx of housing supply.
• Emphasis on New Construction: Notably, all four metros boasting housing levels surpassing pre-pandemic years rank among the top 20 markets for new construction. Research from Ali Wolfe, chief economist at Zonda Homes, underscores this trend, highlighting Dallas as the frontrunner with 42,513 annualized housing starts in 2023. Austin, San Antonio, and Denver follow suit, further reinforcing the significance of new construction in bolstering housing supply.

This concerted effort towards new construction not only addresses the existing demand but also signifies a proactive approach toward fortifying housing markets against future uncertainties.

Exploring the Recovered Housing Markets

Delving deeper into the four metro areas where housing inventory has surpassed pre-pandemic levels, let’s examine the median listing prices alongside a sample listing of property currently for sale on Realtor.com:

1. San Antonio, TX

Median Price: $340,000
Listing: 5703 Hematite Rim listed for $299,900

2. Austin, TX

Median Price: $550,000
Listing: 8211 Philbrook Dr. listed for $484,207

3. Dallas, TX

Median Price: $440,000
Listing: 7549 Donnelly Ave listed for $482,120

5. Denver, CO

Median Price: $620,000
Listing: 520 S Shoshone St listed for $575,000

These figures offer insight into the diverse range of median prices across the recovered metro areas. While San Antonio boasts a median price of $340,000, Austin commands a higher median price of $550,000. On the other hand, Dallas falls in between with a median price of $440,000, and Denver, CO, tops the list with a median price of $620,000.

Furthermore, a glimpse at the sample listings showcases the variety of properties available within these markets. From the charming Hematite Rim in San Antonio to the elegant Philbrook Dr. residence in Austin, each listing offers a unique glimpse into the diverse real estate offerings.

As these recovered metro areas continue to attract attention and investment, prospective buyers and sellers alike are presented with opportunities to engage in vibrant real estate transactions, underpinned by resilience and optimism for the future.