Home prices are holding up and demand is strengthening, but new listings continue to drop as the coronavirus outbreak takes a toll on the economy, according to the latest market data. Plus, condos are getting hit the hardest.
Prices Are Showing Resilience
We reported last week that asking-price growth had stopped falling. Now, it’s actually increasing; the median asking price for listings of new homes was $ 307,000 for the week ending April 19, up 3% from the same period last year. That gain is inflated due to the Easter holiday timing in 2019, but it may come as a surprise to some that prices aren’t down double-digits right now.
Demand Is Strengthening
Home-buying demand dropped 19% last week from pre-coronavirus levels after falling as much as 34% at the start of April. This is based on a new measure we’re introducing, which compares the daily number of homebuyer inquiries, regardless of whether the homebuyer is served by a Redfin agent or one of our partners, to the average daily number of inquiries in January and February, on a seasonally adjusted basis.
Condos Are Taking a Relatively Big Hit
The typical single-family home on the market as of April 18 had been active for five days longer than this time last year, a significant reversal from March, when the typical home had been active for 20 fewer days than the prior year. The typical condo on the market as of April 18 had been active for eight days longer. Similarly, pending sales were down 56% year-over-year for condos and townhomes last week, a more severe drop than the 46% decline for single-family homes.
Speedy Sales Are on the Decline
The share of homes snatched off the market within two weeks dropped 6% last week from the same period in 2019, following a 4% increase at the beginning of this year. Overall, homes are sitting active on the market four days longer now than they were at this time last year. That’s up from the one-day increase we reported last week.
Deals Are Taking Longer to Close
The typical home that sold during the four weeks ending April 13 took 28 days to close—1.6 days longer than the same period a year ago. Some deals are being delayed as lenders grapple with an influx of refinance applications, while others are being postponed because borrowers are having trouble getting funding due to stricter lending requirements, Redfin lead economist Taylor Marr said.
New Listings Continue to Tank
There were 48,965 new-home listings last week, down about 50% from a year ago. That marks a significant pullback from the 33% decline we reported at the beginning of April.