Currently Reading

Listings of Expensive Homes Plunged Faster, Further Than Affordable Housing

Advertisement

Listings of Expensive Homes Plunged Faster, Further Than Affordable Housing


May 11, 2020
For sale sign luxury home
By phonlamaiphoto

Luxury homes are just that—a luxury. And in a time when almost 15 percent of Americans are out of work, necessities come first while the purchases of nonessentials are chopped or kicked down to the road. The priciest fifth of homes on the market has experienced the steepest drop in new listings compared to more affordable houses, according to Zillow. Though the trend toward affordable housing started before the pandemic, the coronavirus’ economic impact has accelerated that push and further hurt the luxury real estate market. 

The overall number of newly listed homes for sale on Zillow was down 39% year-over-year as of May 3, a slightly larger decline than the week before and a reminder that the usual surge of Spring listings is not happening this year in the wake of the nationwide coronavirus outbreak.  

But while the pullback in listing activity has been deep and widespread, some sellers are still making the choice to list their homes — people choose to buy and sell homes based on major life events, which are still very much happening, and not just market activity. And sellers of the nation’s most-affordable homes appear to be more willing to test the waters than owners of more-expensive homes.

Nationwide, new listings among the priciest fifth of homes were down by 46% compared to a year ago, according to a Zillow analysis of listing counts by home value quintile, up a little from the 51% year-over-year decline recorded in mid-April, but still by far the most depressed segment. New listings of these most-expensive homes were the first to fall in response to the pandemic, and receded most quickly from the market when the U.S. outbreak began in earnest in March. These listings began to fall below 2019 levels on March 18, while much cheaper listings did not fall into negative year-over-year territory until more than a week later.  On a typical early-May day in past years, about 28% of new for-sale listings were priced within the top fifth of the home value distribution in a given metro. As of the week ending May 3, these homes made up 25% of new homes coming onto the market. 

Read More
 

Related Stories

Sales

This Flat-Fee Brokerage Wants to Disrupt Denver’s Real Estate Market

Utah-based real estate brokerage, Homie, promises to have your back as a homie should. The company calls itself “disruptive” and wants to use…

Sales + Marketing Trends

Measuring Buyer Demand From Showing Appointments

Measuring buyer demand in a different way, the ShowingTime Showing Index compares the number of appointments made for virtual or in-person …

Design

What Features Prospective Buyers Focus on During Showings

What do homebuyers look at first when touring a prospective home? With the help of some eye-tracking spyglasses, there are actual hard facts that…

Advertisement

More in Category




Advertisement

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
Subscribe
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.