Zillow sees more listings of high-end homes

New listings of high-end homes dropped the farthest and fastest when the coronavirus pandemic hit the U.S., while affordable listings were less affected, a new Zillow analysis shows.

But as new listings have increased in recent weeks in response to strong buyer demand, more high-end homes are coming onto the market than any other type.

New listings of the most-expensive homes – the top fifth of the market – were the first to drop off and fell below last year’s rate before homes in other price tiers. Expensive homes also had the steepest fall of any price tier, dropping 51.4% below last year by mid-April. Meanwhile, listings of the most-affordable homes – where there typically is the tightest inventory – have fallen 32.1% year over year at their lowest point.

The number of new for-sale listings overall has shown improvement, up 5.9% last week from the previous week. New listings of the most-expensive homes – after dropping the most in March – are now seeing the biggest resurgence, up 8%. The uptick is likely a sign sellers are feeling more confident because of improving buyer demand, as newly pending sales have also jumped up during the same period.

The split in listing behavior by price likely has to do with the reasons sellers typically list them for sale. Younger sellers, who tend to sell less-expensive homes, typically face more urgency when selling – they’re more likely to have a job change or new child that prompts a desire to movei. Sellers with higher-priced homes may have more flexibility in their decision, leading many to take a wait-and-see approach in the early days of the pandemic.

“Many sellers with the flexibility to delay or temporarily remove listings have opted to do so, perhaps waiting out the uncertainty. Now that more buyers are in the market, those sellers are wading back in, joining those who had remained motivated to sell for any number of life reasons and adapted with virtual tools and social distancing,” said Skylar Olsen, senior principal economist at Zillow. “We have not yet seen prices affected, though we expect them to fall modestly on a national level as the pandemic plays out.”

Despite recent increases, the current rate of new listings is more typical of mid-December than the spring – usually the busiest time of the year for home shopping. Total inventory remains low as more homes are selling than in early April. Total inventory is down 16.7% year over year – the biggest yearly drop since the pandemic began in the U.S. – and down 1.6% weekly as of the seven days ending May 3.

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

Recent Posts

Can My Sister Get More Than Her Half of an Inherited House?

Ask Brian is a weekly column by Real Estate Expert Brian Kline. If you have…

11 mins ago

How Can I Make Free Money — 4 Easy Ways To Earn In The Time Of Inflation

Nowadays, everybody needs more money than they’re currently earning. Thanks to the peaks in inflation…

17 hours ago

Can You Avoid Capital Gains On the Sale of a Second Home?

You may plan on investing in a second home for personal or financial reasons. You…

1 day ago

What is a Realtor®?

Realtors and Real Estate Agents Are Not The Same When you are to entering the…

1 day ago

Engel & Völkers Launches Dedicated Professional Athlete Advisory Group

Engel & Völkers announced today the launch of its Professional Athlete Advisory Group with the…

2 days ago

Why Hire Rental Property Management Services?

Those who have attempted to manage a rental property on their own will find that…

2 days ago