The promise of a V-shaped housing market recovery is becoming more unlikely as the coronavirus pandemic continues unabated, according to a HouseCanary market report released Wednesday.
The 136-page report — which breaks down housing data on a state-by-state level — specifically draws attention to the dearth of new listings and potential headwinds of government aide expiring in the coming weeks.
“It appears that sellers in states hit hardest by rising COVID-19 cases are reluctant to list homes and may be avoiding listing altogether until there are some meaningful signs that things are getting better with respect to the pandemic,” the report reads.
“There are also potential headwinds on the horizon if the federal government doesn’t sustain the aid needed to help struggling business owners and out-of-work individuals, many of whom have relied on assistance to remain current on mortgage and rent payments in recent months.”
Weekly new listing volume was down 21.9 percent nationwide compared to March 13, the week when most states began to implement lockdowns. New listings are up 23.1 percent from their lowest level during the pandemic — the week ending April 17 — the report found.
Since the COVID-19 lockdowns began to be implemented on March 13, through the week ending July 17, there have been 1,055,597 new listings placed on the market, a decrease of 20.3 percent.
Despite the dearth of listings, the number of homes that have gone into contract over that same time period is only down 3.8 percent year over year.
Price growth — even with tightening supply and an increase in demand — is also starting to diminish, according to the report. Growth in median home prices decreased week over week for newly listed properties in 31 of 41 states, the real estate data and analytics firm found.
“Given these realities, we continue to believe the chances of a V-shaped housing market recovery in 2020 are growing slimmer as the possibility of volatility lasting into 2021 could be a reality,” the report reads.
