Median listing prices are showing signs of turning around as price gains near their pre-COVID level, the latest realtor.com report reveals.
The Weekly Housing Trends report for the week ending May 23, 2020, has been released, and data are showing some positive signs for the housing market. This week, the rate of declines appear to be already relaxing, dropping just nearly 20 percent from the previous weeks' declines of 30 to 40 percent.
The last three weeks (week ending May 9, May 16, and May 23) show the volume of newly listed properties declining by 29%, 28%, and 20%, respectively, from the same period last year. Seventy-five of the 100 large metros, including New York, Los Angeles, and Chicago, still registered smaller declines this week, the research said.
For the week ending May 23, new listings were down 20 percent year-over-year from a decline of 28 percent year-over-year the week before. In comparison, the first two weeks of March saw a growth of five percent from one year prior.
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Meanwhile, median listing price gains are slowly beginning to improve and are nearing the levels before the pandemic. The median listing prices for the last three weeks registered year-over-year growths of 1.4, 1.5, and 3.1 percent, respectively. Seventy-seven of large metros out of 100 saw the asking price increase from the same period last year.
Prior to the COVID-19 pandemic, specifically, the first two weeks of March, the median listing prices were rising, on average, by 4.4 percent year-over-year. Researchers are expecting the momentum to accelerate in the coming weeks as buyers return, and sellers gain confidence in the market again.
Supply is still scarce. The rate of year-over-year decline in the total number of active listings is faster compared to the previous weeks. Active listings are down 22 percent from a year ago for the week ending May 23, while the previous week saw a decline of 20 percent and 19 percent for the week ending May 9.
Sellers' reluctance to list their homes will further impact inventory, especially that home buyer interest is expected to rise given the increase in purchase mortgage applications last week and year-over-year, the report added.
Inventory of homes for sale relative to the nation's population is 53 percent lower than the 20-year average. Only eight homes were listed for sale for every 1,000 households, well below that ideal level of 17 listings per 1,000 households.
Sellers who will brave the current housing market situation are advised to be more patient in finding a buyer and closing transactions. Time on the market for the week ending May 23 was 16 days, which is 29 percent higher as compared to the same period last year. This is the biggest increase in terms of time on the market since 2013.
Ninety-three out of the 100 largest metros, particularly New York and Michigan, showed a double-digit percentage of increase in terms of time on the market from the same period last year, the report added. Pre-COVID days on the market was four days faster on average compared to the same period last year.