April Brings A Bounce To The Housing Market
The pandemic across the world has hurt the country’s economy. Although the housing market is still strong, the sales of new and existing homes fell this March. so far, April is seeing better days in the housing market.
According to Zillow, pending home sales, week-over-week is seeing a positive turn as of the week ending on April 15. Pending home sales, homes with contracts that have not closed, are up 6.2% week-over-week as of the seven days ending April 19.
Web traffic was also up in April. Zillow reports that traffic on for-sale listings and comments for Realtor advice has grown this month. The national total is up to 13% annually for the week ending on April 13 and is higher annually this April in 30 of the 35 largest metro areas. Shelter-in-place has given potential buyers plenty of time at home to look for a home on the internet.
People are getting used to the idea of searching for a home virtually. The housing market has gone online with home tours, home inspections, home appraisals and closings. Homebuyers and investors are comfortable with the current market because home values are holding. The National Association of Realtors’ weekly survey reported that 74% of agents observed their clients have not reduced listing prices.
“Real estate transactions and new listings have declined abruptly amidst the coronavirus pandemic, but we haven’t yet seen prices significantly affected,” said Zillow economist Jeff Tucker.
Redfin reported that buyer demand is recovering nicely. The data compared the daily number of homebuyer inquiries now, to the average in January and February, seasonally adjusted.
“Consumers are mostly abiding by stay-in-shelter directives, and it appears the current decline in buyer and seller activity is only temporary, with a majority ready to hit the market in a couple of months,” said Lawrence Yun, NAR’s chief economist. “Given that there are even fewer new listings during the pandemic, home sellers are taking a calm approach and appear unwilling to lower prices to attract buyers during the temporary disruptions to the economy.”
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