Demand for houses continues to skyrocket, according to a report from Redfin CEO Glenn Kelman. Seasonally adjusted demand for houses during the week of June 1 through June 7 was 25% above pre-pandemic levels.
Kelman said that bidding wars have caused listings to move quickly, and sales prices are up 3.1% year over year. The percentage of newly listed homes to accept an offer within 14 days increased from 42% in May to 47% in June.
“Our abiding concern in May was about the number of homes for sale, but that’s improving too,” Kelman said. “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.”
Following the main story, HousingWire covers data from Realtor.com that indicates housing markets in tech hubs are likely to recover faster from the COVID-19 pandemic and a survey from 72Point and the National Association of Realtors that claims 47% of homeowners have considered selling their home due to the pandemic.
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Nationally, real estate activity is inching closer to January trends and the housing markets in tech hubs are the ones expected to make the quickest recovery from the pandemic, realtor.com said.
According to the latest Housing Recovery Index from realtor.com, Denver, Boston, Seattle, San Francisco and San Diego are leading the recovery this week. These hubs scored 107.6, 106.7, 106, 104.5 and 104.5 points, respectively, for the week ending June 13.
The index is set to 100 for the last week of January. A value of 100 means the market has recovered to the pace seen that month, the company said.
In the U.S., the overall weekly index value is calculated as a weighted composite of four indexed components, including “housing demand,” based on realtor.com online search activity (10%); “home prices” based on median list prices (30%); “housing supply” based on new listings (30%); and “pace of sales” based on median time on market (30%).
Nationally, the Housing Recovery Index was at 90 for the week ending June 13, up 1.2 points over the week ending June 6 and 10 points below the January trend baseline.
National housing demand, which tracks growth in online search activity, reached 123.3 last week. This is up 9.3 points from the week prior and 23.3 points above January’s baseline. The home price component, tracking growth in asking prices, inched forward 0.3 points from the week prior, reaching 101. The new listings tracker reached 88, up only 0.7 points from the week prior. The time-on-market index reached 69.9, flat from the week before and well below January’s baseline.
Locally, realtor.com said that an additional four markets crossed the recovery benchmark this week, bringing the total number of markets above the January baseline to eight.
In terms of local housing demand, all 50 of the largest markets realtor.com monitors are positioned above the recovery trend. The most-recovered markets for home-buying interest are Miami; Birmingham, Alabama; Atlanta; Riverside, California; and Seattle, where the housing demand growth index laid between 138 and 151.7, the report said.
Source: Housing wire
