We reported today that Redfin’s home-buying demand is nearly 17% higher than it was before the coronavirus pandemic, as states ease stay-at-home restrictions and businesses begin to reopen. Below are four charts that highlight other recent developments in the housing market as COVID-19 continues to transform residential real estate.
Sellers Continue to Jump Back In
New listings were down just 24% to 77,000 homes during the seven-day period ending May 15, an improvement from the 30% drop we reported last week, and the 50% decline we saw in mid-April.
“Some sellers have gotten more comfortable putting their homes on the market and agents have gotten more skilled at showing homes safely while social distancing,” Redfin Chief Growth Officer Adam Wiener said in his weekly market update Thursday. “Other sellers worry that a second wave of the virus may shut down the economy again later this year and want to list now to take advantage of the strong demand.”
Home Purchases Are Still Down—But They’re Improving
The number of homes under contract to be sold last week fell 29% from the same period in 2019. While that’s an improvement from the 40% decline in pending home sales that we saw in mid-April, it’s still a far cry from normal.
More Homes Are Getting Snapped Up Quickly
More houses are selling quickly as the lack of supply is fueling bidding wars. During the seven-day period ending May 15, 45% of homes under contract were on the market for less than two weeks—up from 41.6% the prior week.
Prices Return to Pre-Pandemic Levels
The median listing price was up 6% year over year last week to $319,000. That’s about where prices sat at the end of February, before the coronavirus pandemic became widespread in the U.S.
“Many buyers assumed prices would fall as the pandemic set in, but sellers seem to be holding firm,” Wiener said. “The increase in home prices and stories from our agents suggest that sellers who don’t sell are more likely to take their home off the market and wait rather than accept a lower price.”