SANTA CLARA, Calif.,
June 4, 2020 /PRNewswire/ -- The
U.S. housing market likely reached its low point during mid-April
with constrained new inventory and minimal price growth. Signs of
recovery emerged in late April and strengthened in May, setting the
stage for continued growth over the summer, according to
realtor.com®'s May Monthly Housing Trends report issued
today.
The data show the national median listing price hit a new
all-time high of $330,000 in May,
despite rising just 1.6 percent year-over-year. This price growth
was an improvement over April's 0.6 percent year-over-year growth
which was the slowest pace in the past three years. Additionally,
the weekly progression of data showed that price growth and new
inventory trends improved.
The median list price began the month up 1.4 percent and
strengthened throughout the month, increasing 3.1 percent during
the last week of May. New listings were down 29.1 percent the week
ending May 9, but recovered to down
22.9 percent by the week of May 30.
While still well-below last year's levels, the rate of decline in
newly listed properties has improved dramatically from a drop of
44.1 percent year-over-year in April to down 29.4 percent in May.
Despite these positive trends, COVID-related challenges linger;
homes were on the market 15 days longer than this time last
year.
"May's home price data demonstrate the underlying strength of
the U.S. housing market despite the challenges brought by the
COVID-19 pandemic," said realtor.com® Chief Economist
Danielle Hale. "The fact that home
prices are at an all-time high shows that the momentum the market
had prior to the pandemic has helped to keep buyer and seller
expectations stable. Ongoing inventory shortages, that continue to
worsen, also push home prices higher even while homes sell more
slowly."
"As a sense of normalcy returns, we expect to see a shortened,
but strong summer home selling season, as long as seller confidence
continues to improve and more homes are listed for sale," Hale
added.
Listing Prices Hit New High Despite
COVID-19
Thirty-five of the nation's top 50 metros saw the
median listing price grow on a year-over-year basis, up from 30
metros in April. Based on this trend, listing prices could reach
new highs throughout the summer home buying season when prices
typically see their yearly seasonal peak.
Los Angeles-Long
Beach-Anaheim, Calif.
(+14.9 percent), Pittsburgh, Pa.
(+14.0 percent); and Cincinnati,
Ohio-Ky.-Ind. (+12.1 percent); posted the highest
year-over-year median list price growth in May. The steepest price
declines were seen in Detroit-Warren-Dearborn,
Mich. (-3.4 percent); San
Antonio-New Braunfels,
Texas (-3.2 percent); and Seattle-Tacoma-Bellevue,
Wash. (-3.1 percent).
For-Sale Homes Still in Short Supply, but New Listings Trend
Improves
National inventory continued to be constrained,
down nearly 20 percent over last year, as seller reactions to
COVID-19 exaggerated the housing market's already insufficient
supply of homes. At the same time, the month of May ended with an
improvement in the new listings trend--smaller declines--in 45 of
the 50 largest U.S. markets compared to last month. This signals
that sellers are starting to return to the marketplace, which is
needed to restore inventory levels for healthy market
conditions.
Within the nation's 50 largest metros, inventory declined by
21.9 percent year-over-year, a greater rate than April's 16 percent
decline. The metros which saw the largest declines in inventory
were largely those hardest hit by COVID-19 along the East Coast,
including: Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. (-38.6 percent);
Providence-Warwick, R.I.-Mass. (-35.8 percent); and
Baltimore-Columbia-Towson,
Md. (-34.5 percent). This month, none of the largest 50
metros saw an inventory increase on a year-over-year basis and 43
out of the 50 saw greater yearly inventory declines than last
month.
COVID-19 Extends Days on Market
Homes continue to
sell more slowly than last year due to stay at home orders and
modified behavior resulting from COVID-19. The typical home is now
selling in 71 days, which is more than two weeks slower than last
year. Within the nation's 50 largest metros, the typical home sold
in 58 days, 13 days more slowly, on average, compared to last
year.
Among the largest metropolitan areas, homes in areas hit hardest
by COVID-19 saw the greatest increase in time spent on the market,
including: Buffalo-Cheektowaga-Niagara
Falls, N.Y. (+34 days); Pittsburgh, Pa. (+33 days); and Detroit-Warren-Dearborn-Mich. (+32 days).
Metros With
Largest Decline in New Listings
|
Metro
|
New
Listings
YoY
|
Active
Listing
Count YoY
|
Median Listing
Price
|
Median
Listing
Price
YoY
|
Median
Days on
Market
|
Median
Days on
Market Y-
Y
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
-50.3%
|
-38.6%
|
$312,000
|
8.4%
|
73
|
25
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
-43.2%
|
-30.0%
|
$232,000
|
5.5%
|
70
|
34
|
Providence-Warwick,
R.I.-Mass.
|
-41.9%
|
-35.8%
|
$400,000
|
4.6%
|
63
|
18
|
New
York-Newark-Jersey City, N.Y.-N.J.-Pa.
|
-40.7%
|
-21.0%
|
$575,000
|
0.6%
|
72
|
21
|
Baltimore-Columbia-Towson, Md.
|
-40.3%
|
-34.5%
|
$340,000
|
0.0%
|
57
|
15
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
-39.8%
|
-31.5%
|
$510,000
|
4.2%
|
44
|
12
|
Kansas City,
Mo.-Kan.
|
-36.9%
|
-31.0%
|
$350,000
|
7.5%
|
64
|
22
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
-36.3%
|
-25.5%
|
$1,199,000
|
1.9%
|
37
|
10
|
Columbus,
Ohio
|
-35.7%
|
-25.9%
|
$325,000
|
5.7%
|
50
|
14
|
Hartford-West
Hartford-East Hartford, Conn.
|
-35.5%
|
-33.2%
|
$294,000
|
5.0%
|
61
|
15
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
-35.3%
|
-23.1%
|
$490,000
|
2.3%
|
52
|
18
|
Rochester,
N.Y.
|
-35.1%
|
-30.0%
|
$255,000
|
10.3%
|
56
|
25
|
Cleveland-Elyria,
Ohio
|
-34.9%
|
-33.3%
|
$216,000
|
6.7%
|
67
|
14
|
Indianapolis-Carmel-Anderson, Ind.
|
-34.2%
|
-22.8%
|
$298,000
|
0.7%
|
58
|
15
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
-33.1%
|
-31.8%
|
$325,000
|
7.9%
|
55
|
11
|
Boston-Cambridge-Newton, Mass.-N.H.
|
-32.6%
|
-27.6%
|
$630,000
|
4.2%
|
54
|
20
|
Cincinnati,
Ohio-Ky.-Ind.
|
-32.2%
|
-33.7%
|
$325,000
|
12.1%
|
52
|
9
|
Las
Vegas-Henderson-Paradise, Nev.
|
-31.2%
|
-9.0%
|
$329,000
|
2.8%
|
55
|
13
|
Riverside-San
Bernardino-Ontario, Calif.
|
-31.0%
|
-26.8%
|
$428,000
|
2.5%
|
66
|
17
|
Richmond,
Va.
|
-30.9%
|
-17.6%
|
$349,000
|
4.5%
|
55
|
9
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
-30.5%
|
-22.6%
|
$330,000
|
-2.9%
|
59
|
18
|
Milwaukee-Waukesha-West Allis, Wis.
|
-30.5%
|
-17.9%
|
$375,000
|
7.2%
|
51
|
10
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
-30.3%
|
-17.3%
|
$915,000
|
14.9%
|
67
|
25
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
-29.7%
|
-25.6%
|
$350,000
|
0.0%
|
57
|
7
|
Denver-Aurora-Lakewood, Colo.
|
-29.0%
|
-22.6%
|
$549,000
|
6.1%
|
41
|
12
|
Sacramento--Roseville--Arden-Arcade,
Calif.
|
-28.8%
|
-19.2%
|
$505,000
|
2.5%
|
43
|
9
|
Seattle-Tacoma-Bellevue, Wash.
|
-27.5%
|
-21.6%
|
$610,000
|
-3.1%
|
36
|
7
|
Phoenix-Mesa-Scottsdale, Ariz.
|
-27.2%
|
-25.5%
|
$384,000
|
2.2%
|
51
|
2
|
San Diego-Carlsbad,
Calif.
|
-27.1%
|
-29.7%
|
$749,000
|
4.5%
|
44
|
14
|
Raleigh,
N.C.
|
-26.7%
|
-14.7%
|
$375,000
|
-0.4%
|
59
|
8
|
Memphis,
Tenn.-Miss.-Ark.
|
-25.9%
|
-26.7%
|
$250,000
|
7.6%
|
60
|
7
|
St. Louis,
Mo.-Ill.
|
-25.7%
|
-23.2%
|
$250,000
|
6.0%
|
70
|
14
|
Louisville/Jefferson
County, Ky.-Ind.
|
-25.3%
|
-26.9%
|
$290,000
|
0.0%
|
57
|
11
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
-24.6%
|
-19.3%
|
$285,000
|
1.8%
|
66
|
8
|
Orlando-Kissimmee-Sanford, Fla.
|
-24.1%
|
-8.6%
|
$315,000
|
0.0%
|
67
|
10
|
San
Francisco-Oakland-Hayward, Calif.
|
-23.9%
|
-16.0%
|
$998,000
|
5.1%
|
36
|
8
|
New Orleans-Metairie,
La.
|
-23.8%
|
-13.3%
|
$299,000
|
0.0%
|
73
|
14
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
-22.8%
|
-16.7%
|
$334,000
|
-0.6%
|
56
|
9
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
-22.5%
|
-10.1%
|
$398,000
|
-2.2%
|
105
|
16
|
Detroit-Warren-Dearborn, Mich
|
-22.1%
|
-14.4%
|
$252,000
|
-3.4%
|
67
|
32
|
San Antonio-New
Braunfels, Texas
|
-19.9%
|
-9.0%
|
$300,000
|
-3.2%
|
64
|
13
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
-19.9%
|
-11.6%
|
$370,000
|
2.8%
|
42
|
8
|
Pittsburgh,
Pa.
|
-19.7%
|
-17.3%
|
$225,000
|
14.0%
|
91
|
33
|
Houston-The
Woodlands-Sugar Land, Texas
|
-19.0%
|
-11.4%
|
$320,000
|
-1.6%
|
64
|
14
|
Jacksonville,
Fla.
|
-18.8%
|
-11.4%
|
$318,000
|
-1.9%
|
67
|
4
|
Nashville-Davidson--Murfreesboro--Franklin,
Tenn.
|
-16.7%
|
-17.4%
|
$385,000
|
3.6%
|
37
|
3
|
Oklahoma City,
Okla.
|
-16.1%
|
-16.4%
|
$267,000
|
3.8%
|
49
|
6
|
Austin-Round Rock,
Texas
|
-15.5%
|
-13.3%
|
$377,000
|
1.1%
|
51
|
5
|
Birmingham-Hoover,
Ala.
|
-14.4%
|
-18.8%
|
$269,000
|
4.5%
|
64
|
8
|
Dallas-Fort
Worth-Arlington, Texas
|
-12.2%
|
-15.5%
|
$350,000
|
-2.8%
|
55
|
10
|
EDITOR'S NOTE: The realtor.com economics team is
continually tracking the impact of the coronavirus pandemic on the
U.S. economy and housing market. The team's reports and analysis
are available here.
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