Would-Be Home Sellers Slow to Return Despite Buyer Demand
SEATTLE, Aug. 7, 2020 /PRNewswire/ -- Newly pending sales remain well above last year's level, according to Zillow's Weekly Market Report(i). They fell for the second week running in week-over-week numbers, but other measures continue to show a fast-moving market that favors sellers, indicating the recent dip has more to do with a lack of inventory than waning interest from potential buyers. In the rental market, renters and landlords are entering an uncertain period after some added unemployment benefits expired at the end of July.
"Record-low mortgage rates are helping fuel a brisk pace of home sales later into this summer than normal, but buyers are having to compete over fewer and fewer listings," said Zillow economist Jeff Tucker. "The flow of new listings has recovered somewhat, but not fast enough to replace all the recent sales, so inventory continues to plumb new record lows. There's no single reason sellers have been slow to return, but some possibilities include reluctance to having strangers tour their home; concerns about difficulty getting their next home and an assumption that they couldn't sell for a high price right now."
Newly pending sales fell last week, but other indicators show a hot market
-- Newly pending sales fell 0.9% week over week, but remain 13.8% higher
than the same period a year ago.
-- Homes that went under contract last week were typically on the market
for 14 days. That's 11 days faster than last year.
-- The share of listings with a price cut held steady at 4.2%, which is 1.3
percentage points lower than a year ago. It's remained at that share for
the past four weeks.
Sellers are still holding back
-- New for-sale listings fell 3.6% week over week and were 15.8% lower than
the previous year as would-be sellers continue to largely stay out of
the market. That is an improvement from past months -- new listings were
down 16.5% annually in the week ending April 1, and down 24.7% in the
week ending July 1.
-- Total listings are down 26.9% from a year ago, and down 0.9% from a week
earlier.
List prices reach new yearly high
-- The median list price in the U.S. continues to grow, now at $343,680,
6.6% higher than last year.
-- During the week ending June 20, the median sale price was $266,805.
That's 1.4% higher than a year prior.
-- The gap between list prices and sale prices does not necessarily mean
homes are selling for well under their list price. The most-expensive
homes often take longer to sell than more-affordable homes, and they
help push the median list price up while they linger on the market.
Uncertainty ahead for the rental market as some aid expires
-- Rents were chugging along at a stable pace before the coronavirus
pandemic, but heavy service-sector unemployment has hit renters more
severely than homeowners, impacting rental demand and slowing price
growth. Boosted unemployment benefits have expired with no replacement
in place for now, and that may cause a ripple effect felt by renters,
landlords and those who rely on the rental industry.
-- Rent prices in urban areas have slowed more than those in suburban
areas, a possible signal that renters' preferred location is tilting
toward the suburbs.
Metropolitan Area* Newly Pending Sales - Newly Pending Sales - Median Days to Pending New For-Sale Listings - New For-Sale Listings - Total For-Sale Listings Median Sale Price** Median Sale Price -
YoY WoW YoY WoW - YoY YoY**
---
United States 13.8% -0.9% 14 -15.8% -3.6% -26.9% $266,805 1.4%
---
New York/Newark,
NY/NJ N/A 3.7% 28 -1.9% -5.7% -19.5% $439,170 5.6%
---
Los Angeles, CA 0.6% 1.3% 13 6.2% -2.0% -27.3% $669,700 1.7%
---
Chicago, IL 35.7% -1.4% 14 -6.5% -4.5% -25.4% $249,700 0.1%
---
Dallas-Fort Worth,
TX 21.5% 1.4% 24 -15.0% -7.4% -24.4% $286,117 1.3%
---
Philadelphia, PA N/A -1.5% 9 -12.7% -9.4% -36.6% $260,934 0.5%
---
Houston, TX N/A 0.2% 17 -30.3% -9.9% -22.1% $253,100 0.9%
---
Washington, DC N/A -0.2% 7 -12.3% -7.0% -34.4% $432,180 1.1%
---
Miami-Fort
Lauderdale, FL N/A -0.4% 31 -4.4% -6.5% -11.1% $317,600 8.7%
---
Atlanta, GA 10.5% -0.3% 16 -16.7% -1.0% -18.8% $267,118 1.0%
---
Boston, MA 13.4% -3.9% 9 -13.6% 3.2% -24.2% $497,800 3.3%
---
San Francisco, CA N/A 0.4% 12 21.2% -0.7% -7.1% $868,500 0.9%
---
Detroit, MI N/A -0.2% 8 -18.3% -4.2% -30.7% $196,970 -3.1%
---
Riverside, CA 7.9% -1.9% 11 -6.5% -4.4% -43.8% $386,017 3.3%
---
Phoenix, AZ N/A 0.8% 13 -6.5% 1.3% -28.3% $305,940 5.1%
---
Seattle, WA N/A 0.2% 6 -4.6% 6.7% -36.4% $525,635 3.8%
---
Minneapolis-St.
Paul, MN N/A 1.3% 18 -16.0% -2.6% -24.1% $295,990 3.9%
---
San Diego, CA N/A 2.5% 8 -10.6% -2.5% -37.6% $596,650 0.9%
---
St. Louis, MO 14.3% -2.9% 7 -17.6% -9.9% -29.3% $205,555 2.2%
---
Tampa, FL N/A N/A 11 -9.0% -12.0% -30.2% $244,678 5.9%
---
Baltimore, MD 10.0% -1.8% 10 -16.9% -5.6% -42.7% $306,785 0.4%
---
Denver, CO 17.0% -0.9% 7 -9.7% -7.9% -27.4% $437,526 1.8%
---
Pittsburgh, PA N/A -2.1% 8 2.7% 5.4% -24.6% $184,200 -0.2%
---
Portland, OR 15.6% 0.3% 6 -18.8% -8.4% -30.1% $417,899 2.0%
---
Charlotte, NC -13.3% -4.8% 7 -27.1% -4.8% -38.1% $265,883 -1.8%
---
Sacramento, CA 15.1% -2.5% 8 -10.4% -0.4% -35.8% $439,900 3.6%
---
San Antonio, TX N/A 2.2% 26 -31.2% -2.0% -20.6% $246,063 3.3%
---
Orlando, FL N/A N/A 13 -16.2% -8.4% -15.6% $268,021 2.4%
---
Cincinnati, OH 2.4% -1.4% 4 -13.4% 10.1% -36.4% $206,340 7.3%
---
Cleveland, OH 20.8% -0.2% 17 -14.8% -2.2% -37.0% $169,140 2.5%
---
Kansas City, MO N/A -1.3% 5 -21.3% -0.2% -38.8% $245,580 2.9%
---
Las Vegas, NV N/A -0.5% 19 -2.4% 1.7% -26.8% $303,869 2.2%
---
Columbus, OH 1.4% -0.9% 4 -26.5% -3.3% -34.9% $224,560 1.3%
---
Indianapolis, IN N/A 0.1% 5 -25.4% -11.2% -37.0% $213,800 8.5%
---
San Jose, CA N/A 4.7% 14 4.6% -5.3% -24.6% $1,127,500 0.2%
---
Austin, TX N/A 1.5% 9 -16.3% -1.2% -26.3% $339,700 2.4%
---
Virginia Beach, VA N/A 5.3% 33 6.4% 2.2% -35.6% $267,600 2.3%
---
Nashville, TN N/A N/A 36 -22.5% -0.5% -12.8% $306,690 1.7%
---
Providence, RI N/A -0.1% 12 -5.1% -1.4% -32.6% $304,450 1.8%
---
Milwaukee, WI N/A N/A 27 -17.7% -7.2% -11.1% $241,240 -0.1%
---
Jacksonville, FL 25.7% 0.0% 15 -18.7% -14.3% -28.4% $256,491 1.4%
---
Memphis, TN N/A 1.0% 6 -24.2% -7.5% -37.5% $201,560 2.6%
---
Oklahoma City, OK N/A -1.5% 9 -20.4% -7.8% -28.2% $200,176 3.0%
---
Louisville, KY N/A -3.2% 6 -18.4% 0.6% -38.4% $205,536 2.5%
---
Hartford, CT 35.4% -4.0% 8 -11.5% 3.3% -40.5% $236,790 -0.9%
---
Richmond, VA N/A N/A 6 -26.9% -10.1% -31.4% $275,450 3.4%
---
New Orleans, LA 29.4% 1.6% 18 -19.8% -3.1% -35.8% $225,980 5.4%
---
Buffalo, NY 6.5% -0.7% 10 -11.5% -6.3% -29.8% $173,530 3.8%
---
Raleigh, NC N/A -4.7% 5 -25.5% -14.6% -31.8% $299,580 0.1%
---
Birmingham, AL 31.2% 0.4% 9 -20.1% -7.1% -31.3% $219,545 -0.6%
---
Salt Lake City, UT N/A N/A 7 -35.8% -10.5% -38.3% $365,690 7.1%
---
*Table ordered by
market size
** Sale price data as
of the week ending
June 20
About Zillow
Zillow, the top real estate website in the U.S., is building an on-demand real estate experience. Whether selling, buying, renting or financing, customers can turn to Zillow's businesses to find and get into their next home with speed, certainty and ease.
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i The Zillow Weekly Market Reports are a weekly overview of
the national and local real estate markets. The reports are
compiled by Zillow Economic Research and data is aggregated
from public sources and listing data on Zillow.com. New for-
sale listings data reflect daily counts using a smoothed,
seven-day trailing average. Total for-sale listings, newly
pending sales, days to pending and median list price data
reflect weekly counts using a smoothed, four-week trailing
average. National newly pending sales trends are based upon
aggregation of the 38 largest metro areas where historic
pending listing data coverage is most statistically
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SOURCE Zillow
