Home valuation fintech pioneer HouseCanary, today announced the continued review of data from the HouseCanary platform of 45 states and the District of Columbia with sufficient property listing and transaction volume. This issue of Market Pulse compares data between the week ending May 29, 2020, and the week ending March 13, 2020, detailing 22 listing-derived metrics. Additionally, this week HouseCanary will begin monitoring listing activity broken out into three individual price tiers denoted as lowest, middle, and luxury. These three price tiers are determined by finding the property values which split each market’s entire single-family housing stock into three equally sized tertiles. Price tiers are dependent upon the market, and cutoff values vary by market depending on overall aggregate prices within that market.
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U.S. Map: Week-over-week Change in Median Price of New Listings for Week Ending May 29, 2020 (Graphic: Business Wire)
Nationwide new listing volume of single-family detached homes was down 30.7% compared to the week ending March 13, when most COVID-19 measures were implemented. Although, the data revealed new listing volume is up 8.6% from its lowest level during the week ending April 17. Growth in new listing volume has slowed this week, with weekly new listing volume down 13.2% this week from last week. This week represents the lowest level of new listings since the week ending April 24. Since the beginning of COVID-19, the week ending March 13, through the week ending May 29, there have been 561,576 net new listings placed on the market. Broken out by price tier, the lowest price tier has accounted for 68.5% of net new listings since the week ending March 13, the middle price tier at 19.2% of net new listings, and the luxury price tier at 12.3% of net new listings.
For the week ending May 29, the weekly volume of listings going into contract for single-family detached homes was up 8.4% nationwide compared to the week ending March 13, when most COVID-19 measures were implemented. Since the week ending March 13, 683,656 properties have gone into contract across 46 states. Broken out by price tier, the lowest price tier has accounted for 73.2% of total contract volume since the week ending March 13, the middle price tier at 17.0% of total contract volume, and the luxury price tier at 9.8% of total contract volume.
For the week ending May 29, a total of 70,413 listings went under contract nationwide. Weekly volume of listings going into contract is up 69.6% from its lowest level during the week ending April 10. This week marked the first weekly decrease in nationwide weekly contract volume after increasing for six consecutive weeks. Even with contract volume down slightly this week compared to the week prior, this is the third straight week in which weekly contract volume was at or above volume for the week ending March 13.
The weekly volume of listings removed for single-family detached homes was down 32.8% nationwide compared to the week ending March 13. This week represents the lowest weekly volume of listings removed throughout all of 2020 so far. HouseCanary notes that since the week of April 5, homes being removed from the market have settled back down to pre-COVID-19 levels.
All of this activity has culminated in a tight supply of homes listed for sale. The total nationwide available inventory of single-family detached homes was down by 0.7% compared to the week ending March 13. It has remained relatively constant over the entire period since that week. Tight supply has helped stabilize prices in many markets during the weeks following March 13.
The current supply inventory continues to put natural upward pressure on new listing prices, and although it’s somewhat counterintuitive during these turbulent times, the median new listing prices continue to rise. Just over half of the states, 26 out of 46, saw an uptick in the median price of new listings, while 17 states showed price declines and 3 states saw prices unchanged relative to the week prior. Hawaii again outperformed the rest of the states with a week-over-week increase of 10.1% in the median price of new listings, followed by West Virginia, Vermont, D.C. and Virginia. The largest declines were seen in New Jersey and Kansas, while Missouri, Delaware, and Maryland saw prices hold steady this past week.
“HouseCanary went a step further with our data research this week by looking at activity in three price tiers – lowest, middle and luxury – during the weeks since the COVID-19 pandemic impacted business activity across the country,” said Jeremy Sicklick, Co-Founder and CEO of HouseCanary. “The lowest-priced homes are dominating the activity with more than 73% of homes going into contract falling in that tier. Before the pandemic, first-time buyers were clamoring for a chance to enter the market. This could be an indication that these buyers are showing up in droves.”
As a nationwide real estate broker, HouseCanary’s broad multiple listing service (MLS) participation allows us to evaluate listing data and aggregate the number of new listings as well as the number of new listings going into contract for all single-family detached homes observed in the HouseCanary database. Using this data, HouseCanary continues to track listing volume, new listings, and median list price for 46 states and 48 individual MSAs.
HouseCanary will continue to monitor these and other economic indicators for the U.S. housing market and local markets weekly and report results to the news media. HouseCanary is committed to sharing trusted, real-time information given how quickly the housing markets are evolving. For more information about the data that HouseCanary is following, please visit www.housecanary.com.
Founded in 2013, valuation-focused real estate brokerage HouseCanary provides software and services to reshape the real estate marketplace. Financial institutions, investors, lenders, mortgage investors, and consumers turn to HouseCanary for industry-leading valuations, forecasts, and transaction-support tools. These clients trust HouseCanary to fuel acquisition, underwriting, portfolio management, and more. Learn more at www.housecanary.com.