iCrowdNewswire Nov 13, 2020 1:08 PM ET
Buyers and sellers took a step back from the market last week as the nation focused its attention on the presidential election and surging coronavirus cases, according to realtor.com®‘s Weekly Housing Report for the week ending Nov 7. The latest report found new listings declined even further from the prior week, while prices and the pace of sales continue to hold steady — further thwarting the usual seasonal slowdown.
“Between the presidential election and a new wave of coronavirus cases, buyers and sellers had a lot of reasons to pause last week,” according to realtor.com® Chief Economist, Danielle Hale. “The big question is whether both buyers and sellers will jump back into the market after last week’s break. With mortgage rates expected to rise on news of a likely vaccine, buyers may have reason to jump back in and find a home sooner rather than later, but sellers may be more inclined to stay on hold. Thus, even as overall activity slows, we may very well see continued price growth and quick sales.”
Sellers take a break from putting their homes on the market
- New listings further declined for the second week in a row, down 12% for the week ending Nov. 7 from last week’s decrease of 9%. This is a step backwards for newly listed homes which were down only 2% for the week ending Oct. 24.
- New listings are a crucial ingredient for homes sales and they will need to make a strong comeback for housing activity to continue.
- Due in part to the decrease in newly listed homes, the total number of homes for sale saw a slight deceleration and dropped to down 39% year-over-year after spending five steady weeks down 38%.
Home prices and the time it takes to sell continue to signal a tight market
- Listing prices extended their streak of double-digit growth for the 13th consecutive week, up 12.9% over last year.
- As buyers continue to find fewer options for sale, the homes that are available are selling rapidly. The average time on market is just short of two weeks — 13 days — faster compared to a year ago.
- This is the seventh week in a row that homes are selling 13 or 14 days faster than last year. If this trend shifts and homes begin to sell even more quickly, it is a good indication that buyers have no intention of taking the holidays off this year, but continued steadiness in the year over year difference would mean we’re seeing at least some of the usual seasonal pause in housing activity.
U.S. housing market shows signs of activity easing
- Realtor.com® tracks the overall strength of the housing market through its proprietary Housing Market Recovery Index, which compares real-time key indicators, including trends in number of searchers on realtor.com®, median listing prices, the number of newly listed homes, and the time it takes to sell to January 2020, prior to the pandemic.
- The index declined to 108.0 nationwide for the week ending Nov. 7, 8.0 points above the pre-COVID baseline but a decrease of 1.4 points from the prior week. This puts the index on par with September levels, a month when existing home sale closings exceeded a 6.5 million seasonally adjusted annual rate.
- The index shows us that the market remains unusually strong for this time of year, but housing activity has begun to slow down for the second consecutive week as it comes down from October’s high point of 112.4.
Cody Horvat, firstname.lastname@example.org
Cody Horvat, email@example.com