While the housing market will suffer from the COVID-19 crisis, it's stronger than it was in during its last crash in 2008, according to First American Financial.
"Many still bear
January's home purchasing power — the amount a consumer can buy based on fluctuations in income, mortgage rates and home prices —
The Real House Price Index, which measures changes in home values based changes in home purchasing power, decreased 3.8% year-over-year and edged up 0.1% month-over-month. Median household income rose 2.3% from January 2019.
Though these figures don't yet take into account the economic effects of COVID-19, they illustrate the housing market's power before the pandemic began.
"As we are all too aware,
At the state level, New Jersey and Ohio had the only annual increases in RHPI at 2.7% and 0.2%, respectively. Utah had the largest decline, falling 7.5%. New Mexico and Colorado followed, each with decreases of 7.2%.
By metro area, Cleveland home prices grew the most at 3.5%, trailed by 1.4% in Milwaukee and 0.8% in Cincinnati. The greatest decreases came with San Francisco's 8.4%, Boston's 8.2% and Denver's 8.1%.