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New Report from HouseCanary Indicates the COVID-19 Recession is Spooking Would-Be Home Sellers and Stalling Market Activity

Housing Inventory and Home Sales Continue to Plunge on a Week-Over-Week Basis, with New Listing Volume Down 5.0% and Contract Volume Dipping 4.3%

Net New Listings are Down Significantly on a Year-Over-Year Basis, Underscoring that Economic Uncertainty is Causing Sellers to Stand Pat

Persistent Supply Constraints are Raising Prices for Prospective Buyers Across the Country, with Homes in Nearly 40 States Selling for More Than Pre-Pandemic Levels

HouseCanary, Inc. (“HouseCanary”), a leading provider of residential real estate data and home valuations, today released its latest Market Pulse report, covering 22 listing-derived metrics and comparing data between the week ending August 14, 2020 and the week ending March 13, 2020. The Market Pulse is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200820005287/en/

HouseCanary Market Pulse (Photo: Business Wire)

Jeremy Sicklick, Co-founder and Chief Executive Officer of HouseCanary, commented: “Over the past few months, the housing market has seen a persistent decline in supply that is now undermining price stability and threatening to further quell home sales activity. The lack of housing supply is keeping prices unexpectedly high across the country, making it difficult for potential homebuyers to purchase properties despite access to credit and low mortgage rates. Homeowners appear very reluctant to list their homes due to the recessionary environment, political uncertainty and pandemic unknowns. It is also very important to highlight that homeowners by-and-large have considerable equity in their properties and are not ‘under water’ like owners were during the Great Recession.”

Select findings from this week’s Market Pulse are below. Be sure to review the Market Pulse in full for extensive state-level data.

Weekly New Listing Volume (Single-Family Detached Homes):

  • New listing volume is down 5.0% week-over-week
  • New listing volume is down 23.1% nationwide compared to the week ending March 13, when most COVID-19 measures were implemented
  • Decline in new listing activity since the week ending March 13, broken down by home price:
    • $0-$200k: (-26.1%)
    • $200k-$400k: (-26.3%)
    • $400k-$600k: (-22.1%)
    • $600k-$1mm: (-14.5%)
    • >$1mm: (-7.0%)

Total Net New Listings:

  • Since the week ending March 13, there have been 1,325,403 net new listings placed on the market, representing a 15.9% decrease relative to the same period in 2019
  • For the week ending August 14, there were 54,365 net new listings placed on the market, representing a 2.9% decrease compared to the previous week
  • Percentage of total net new listings since March 13, broken down by home price:
    • $0-$200k: 22.5%
    • $200k-$400k: 44.7%
    • $400k-$600k: 17.7%
    • $600k-$1mm: 10.1%
    • >$1mm: 5.0%

Median Listing Price Activity (Single-Family Detached Homes):

  • 38 states are experiencing higher median prices of closed listings since the onset of the pandemic, with 31 states continuing to climb week-over-week
    • The states with the most significant closed listing price increases since the pandemic’s onset include:
      • New Jersey: +28.1%
      • Connecticut: +27.9%
      • Vermont: +25.7%
    • The most significant week-over-week closed listing price increases include:
      • West Virginia: +6.0%
      • Rhode Island: +4.6%
      • Connecticut: +4.2%

Weekly Contract Volume (Single-Family Detached Homes):

  • Weekly contract volume is down 4.3% week-over-week
  • Percent change in contract volume week-over-week, broken down by home price:
    • $0-$200k: (-4.6%)
    • $200k-$400k: (-3.7%)
    • $400k-$600k: (-5.3%)
    • $600k-$1mm: (-3.3%)
    • >$1mm: (-6.3%)
  • Weekly contract volume is up 12.2% nationwide compared to the week ending March 13, when most COVID-19 measures were implemented
  • Percent change in weekly contract volume since the week ending March 13, broken down by home price:
    • $0-$200k: (-1.7%)
    • $200k-$400k: +9.5%
    • $400k-$600k: +20.4%
    • $600k-$1mm: +37.9%
    • >$1mm: +46.7%

Total Listings Under Contract:

  • Since the week ending March 13, 1,508,536 properties have gone into contract across 41 states, representing a 1.1% decrease relative to the same period in 2019
  • For the week ending August 14, there were 71,011 listings that went under contract nationwide
  • Percentage of total contract volume since the week ending March 13, broken down by home price:
    • $0-$200k: 24.3%
    • $200k-$400k: 45.1%
    • $400k-$600k: 17.1%
    • $600k-$1mm: 9.3%
    • >$1mm: 4.2%

As a nationwide real estate broker, HouseCanary’s broad multiple listing service (“MLS”) participation allows us to evaluate listing data and aggregate the number of new listings as well as the number of new listings going into contract for all single-family detached homes observed in the HouseCanary database. Using this data, HouseCanary continues to track listing volume, new listings, and median list price for 41 states and 50 individual Metropolitan Statistical Areas (“MSAs”).

About HouseCanary:

Founded in 2013, valuation-focused real estate brokerage HouseCanary provides software and services to reshape the real estate marketplace. Financial institutions, investors, lenders, mortgage investors, and consumers turn to HouseCanary for industry-leading valuations, forecasts, and transaction-support tools. These clients trust HouseCanary to fuel acquisition, underwriting, portfolio management, and more. Learn more at www.housecanary.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200820005287/en/

Contacts

Denise Dunckel
press@housecanary.com

 

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