US home prices are actually still rising

The pandemic has hit both supply and demand

National /
May.May 05, 2020 02:00 PM
(Credit: iStock)
(Credit: iStock)

A look at home prices and one might forget there’s a virus sending the economy into chaos.

The bottom hasn’t fallen out from under the housing market, at least not in terms of pricing, according to the Wall Street Journal. In fact, the National Association of Realtors found the national median home price rose 8 percent year-over-year in March to $280,600.

The pandemic hasn’t created the imbalance that sends prices shooting up or down. While sales fell 8.5 percent in March from February, the pandemic has also brought down supply — total listings hit a five-year-low at the end of April.

“Demand absolutely just got a kick in the gut, but at the same exact time, so did supply,” said Zillow Group senior economist Skylar Olsen.

That was seen on a smaller scale as well. Hard-hit Manhattan saw an 89 percent drop in new listings in mid-April. Multi-million dollar deals continue to close in New York, but just at a much slower pace.

Sellers haven’t yet been forced en masse to drop prices and move properties. Many are holding out, hoping that they can still cut a deal without a discount once stay-at-home orders are lifted and buyers can again see homes.

Only about 4 percent of sellers cut their prices in the week ending on April 25, compared to 5.7 percent of sellers who cut prices during the same week last year.

Overall, American homeowners are in a better financial position than they were before the last economic crisis, so fewer are expected to be forced into listing their properties. [WSJ] — Dennis Lynch


Related Articles

arrow_forward_ios
Aerial Shot of a Suburban Street in San Fernando Valley (Getty)
San Fernando Valley home prices top another record in May
San Fernando Valley home prices top another record in May
Los Angeles rents are increasing - but not yet at pre-pandemic levels (Getty)
Rents in LA are climbing from their pandemic lows
Rents in LA are climbing from their pandemic lows
(Getty)
No more tiers — California’s economy fully reopens
No more tiers — California’s economy fully reopens
The Chateau Marmont (Getty) and protest signs (Unite Here Local 11)
Chateau Marmont workers say iconic West Hollywood hotel misused rescue funds
Chateau Marmont workers say iconic West Hollywood hotel misused rescue funds
Gov. Gavin Newsom (Getty, iStock)
$2.6B rent relief program hampered by delays
$2.6B rent relief program hampered by delays
California is waiting to adopt the CDC maskless decision. (Getty)
California still says mask up at office, for now
California still says mask up at office, for now
(iStock)
Buildable home lots in LA and Orange counties at lowest levels
Buildable home lots in LA and Orange counties at lowest levels
L.A. County Public Health Director Barbara Ferrer (Getty, iStock)
LA County to retailers: Masks still a must
LA County to retailers: Masks still a must
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...