A recent report from the Colorado Association of Realtors (CAR) showed that while the COVID-19 pandemic may be hitting the economy hard, median home prices defied the odds and jumped 3.1% year over year for the week ending May 23. That is double the 1.5% annual increase for the previous week.

The National Association of REALTORS® recently reported that nationwide, prices for existing homes jumped 7.4% in April compared to a year earlier. All four major regions of the U.S. posted annual price gains.

Realtor.com Senior Economist, George Ratiu, said that there are still buyers in the market, but given the very limited number of properties available, buyers are willing to pay more.

The number of listings on the market fell 22% year over year during the week of May 23, according to realtor.com® reports. More buyers are competing for a limited supply of homes, prompting home prices to rise. Prior to the institution of state stay-at-home orders, home prices increased 4.4% annually in the first two weeks of March.

Ratiu said the mix of homes that are on the market now is a little bit different and that what is really selling at a premium are lower-priced homes. The higher-priced homes are sitting on the market longer, which present a good opportunity for negotiations. If buyers are not on a strict timeline, being patient could pay off as more homes are listed.

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