March data shows a steep slowdown in the housing market, particularly after shelter-in-place orders … [+]
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March is now in the rear-view, and thanks to the month’s data, we now have a good idea of just how much the growing COVID-19 outbreak could hurt housing.
According to a new report from Realtor.com, there are now 191,000 fewer homes for sale than this time last year. Housing inventory declined 15.7% in March, with even larger dips toward the end of the month. In the week ending on March 28, the market saw a 34% slide in newly listed properties.
Inventory dropped the most in Phoenix, where listings fell a whopping 42% in March. Milwaukee’s inventory dropped 36.2%, and listings in San Diego fell 33.4%. Minneapolis was the only major metro that did not see an annual decline.
Though Danielle Hale, the chief economist for Realtor.com, says the impacts of COVID-19 are still evolving, one thing is clear: The nation’s previously strong housing market has been thrown off course.
“The U.S. housing market had a good start to the year,” Hale says. “Despite still-limited homes for sale, buyers were buying and builders were building. The pandemic and virus-fighting measures appear to be disrupting that initial momentum as both buyers and sellers adopt a more cautious posture.”
That “cautious” approach is becoming more and more apparent on the ground. According to a recent survey from HomeLight, 80% of real estate agents have seen seller activity drop in their regions. Nearly two out of three have seen a seller actually take their home off the market, and 75% say that buyer interest has waned.
One thing that hasn’t declined? That’d be refinancing demand. With interest rates at historic lows and many Americans struggling financially, the market has seen a surge in refinance activity as of late.
Data from the Mortgage Bankers Association shows applications for refinances jumped 26% last week. They’re now 168% higher than this time last year.