Press Release: U.S. Housing Market Shows Seasonal Trends Amidst Pandemic Disruption
The U.S. housing market has historically followed a seasonal rhythm, with home prices typically rising during spring and summer, while fall and winter see declines in both activity and prices. This seasonal trend was upended by the COVID-19 pandemic, which sparked an unprecedented year-round surge in home prices fueled by low mortgage rates and growing demand for larger homes amid remote work. As the market begins to stabilize post-pandemic, certain regions are reverting to pre-pandemic patterns, while others continue to exhibit unusual price behaviors.
A recent analysis of housing data reveals that home sales saw a contentious rebound throughout 2020 and into 2021, with nearly 725,000 homes sold in June 2021—an exceptional high for the past decade. However, the market has cooled since then, primarily due to inflation-driven interest rate hikes, leading to a significant drop in sales volume, reaching just over 400,000 in September 2024.
This year, the return of seasonal price fluctuations has been evident. In 2022, average home prices dropped by 11.6% from summer to winter, closely aligning with the ten-year average. This trend continued into 2023, with a more modest decline of 5.1%.
Geographical variations contribute to these seasonal shifts in home prices, with states in the Midwest and Northeast experiencing the most pronounced fluctuations. For instance, Illinois and Ohio rank high in seasonal price variations, reflecting their severe winter climates. Meanwhile, states with milder temperatures and consistent demand, such as Arizona and Florida, demonstrate only minimal seasonal changes.
As the market continues to adjust, buyers and sellers are advised to stay informed about regional trends and timelines to make the most of the evolving housing landscape. For further insights, refer to the “Cities With the Biggest Seasonal Changes in Home Prices” report by Construction Coverage, derived from Redfin data.
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