At first glance, reported home sale prices that only increased .5% year over year in May 2020 might appear to be disappointing news for real estate professionals and their customers. However, according to an article published by Redfin.com, the slight gain was mostly impacted by the small number of homes selling in expensive U.S. cities. Further, Redfin’s lead economist Taylor Marr sees some positive news based on other spring sales numbers, stating, “Although the housing market was still mostly stalled in May, it’s worth noting that homes under contract to be sold jumped 33% between April and May after two consecutive months of decline. This is a key leading indicator for home sales in June and July. New listings of homes for sale have also likely passed their bottom…”
Nevertheless, the market still has a ways to go before it is back on track to performance during the pre-COVID-19 shut down. Although all large metro areas in the U.S. have seen significant declines in home sales as compared to last spring, areas such as Michigan and Pennsylvania saw decreases of over 60%. These are examples of a couple of states that were the most restrictive for staying at home during the pandemic’s initial outbreak.
Yet, good news appears to be on the horizon. New listings, according to the article, increased almost 36% from April. Additionally, days on the market and number of homes selling above list price remain positive, signs of a strong buyers’ market continued throughout the state wide shut downs, due to continued low inventory of homes and low mortgage rates.
Read the entire article for more details and highlights across the nation’s metro areas.