flexiblefullpage - default
Currently Reading

Housing Market Is “Bananas," Demand Surges 25% Above Pre-Pandemic Levels

billboard - default

Housing Market Is “Bananas," Demand Surges 25% Above Pre-Pandemic Levels

June 15, 2020
Housing Aerial California
By Felix Mizioznikov

Now that buyers have had a taste of freedom, it seems that neither protests nor a possible resurgence of the pandemic can deter them from finding their new homes. For the week ending June 7, demand is now 25 percent higher than it was in January and February on a seasonally adjusted basis, according to Redfin. “It’s just bananas, with so few listings and so many buyers,” Hazel Shakur, Redfin Maryland agent, says. This is the eighth straight week of growing demand. Listings are on the rise as well, creeping up 6 percent from the week prior to 15 percent below last year’s levels. Though inventory will still be a thorn in the housing market’s side, sellers are finally feeling more comfortable with listing their properties. They’re still worried about the health risks, but this housing bonanza is too good to sit out. 

It seems that nothing can deter homebuyers. Seasonally adjusted demand for the week of June 1 – June 7 is now 25% higher than it was pre-pandemic in January and February, marking the eighth straight week of rising demand.

Our abiding concern in May was about the number of homes for sale, but that’s improving too. After falling to 21% below last year’s level the week of May 25 – 31, new listings last week continued their recovery; last week’s new listings were 15% below last year’s level. 

Listings accepting an offer improved as well. Two weeks ago, this number was down 11% year-over-year, but for the week of June 1 – June 7 it was 9%. With demand surging and supply recovering, we expect sales to strengthen; mortgage purchase applications were up 7% year-over-year in the last week of May and up even more, 13%, in the first week of June.

Read More

Related Stories

Housing Markets

Home Inventory Levels: US Cities With the Most—or Fewest—Homes for Sale

While for-sale inventory is rising slowly but steadily nationwide, many markets remain undersupplied and overpriced on a year-over-year basis

Market Data + Trends

The Biggest Hurdle for Housing Is Seller Hesitation, Experts Say

Elevated borrowing costs are currently affecting both homebuyers and sellers, with buyers hesitant to spend and sellers unwilling to list and sacrifice the lower rates they've locked in on their current homes

Government + Policy

Bipartisan House Bill Aims to Incentivize Home Selling

The More Homes on the Market Act seeks to amend the sales gain tax exclusion to bring more homes into the for-sale market

boombox1 -
native1 - default
halfpage2 -

More in Category

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.