Heavy Buyer Demand Tilting Market in Favor of Sellers

Rhea-AI Summary

Zillow's Weekly Market Report reveals a tight housing market with sellers in control. Homes went under contract at record speeds, averaging 20 days on the market, a week faster than last year. Newly pending sales dropped 4%, continuing a trend, while inventory remains critically low, down 22.4% year-over-year. Only 4.1% of listings experienced price cuts, indicating strong demand. The median list price increased to $338,760, up 4.3% year-over-year, driven by more high-end listings.

Positive

• Homes sold faster, averaging 20 days on the market.
• Median list price rose to $338,760, up 4.3% year-over-year.
• Only 4.1% of active listings had price cuts, indicating strong demand.

Negative

• Newly pending sales declined by 4% week-over-week.
• New for-sale listings decreased by 1.5% from the previous week and are down 27.2% year-over-year.
• Total for-sale inventory is 22.4% lower than last year.

SEATTLE, July 10, 2020 /PRNewswire/ -- Sellers have the upper hand in today's housing market, according to -27151%2F&a=Zillow%27s+Weekly+Market+Report" rel="nofollow">Zillow's Weekly Market Reportⁱ. Despite a dip in newly pending sales, homes are flying off the market at a record pace and inventory remains incredibly scarce. 

Homes are being snatched up at a record pace

• Homes once again went under contract at their fastest pace since at least 2018 (when Zillow began tracking the data), tying a record set last week. 
• Homes sold in the week ending July 4 were typically on the market for 20 days before a contract to sell was signed, a full week faster than the same period last year. And they are typically selling after only five days in Kansas City, Cincinnati and Indianapolis. 
• Newly pending sales fell 4% from the previous week -- the second consecutive weekly drop --  and remained steady from a month earlier. 

The housing market continues to be starved for inventory

• New for-sale listings dropped 1.5% from the previous week. They are now 7.9% below last month's level, and down 27.2% from a year ago. 
• Total for-sale inventory is 22.4% lower than during the same week last year. 

Few price cuts show the market has tilted in favor of sellers

• Housing demand is clearly outstripping supply, as demonstrated in this week's sales and inventory figures. Sellers are reacting by more often holding steady with their list price -- only -27471%2F&a=4.1%25+of+active+listings+had+undergone+at+least+one+price+cut" rel="nofollow">4.1% of active listings had undergone at least one price cut last week, down from 5.6% a year earlier.
• The median list price grew again to $338,760, up 0.5% from the previous week and 4.3% year over year. -27447%2F&a=High-end+homes+are+coming+onto+the+market" rel="nofollow">High-end homes are coming onto the market at a greater rate than more-affordable homes, helping to drive up the median list price.

 

Metropolitan Area	Newly Pending Sales - MoM	Newly Pending Sales - WoW	Median Days to Pending	New For- Sale Listings - YoY	New For- Sale Listings - WoW	Total For-Sale Listings - YoY	Median List Price - YoY
United States	0.0%	-4.0%	20	-27.2%	-1.5%	-22.4%	4.3%
New York, NY	19.2%	2.2%	44	-5.8%	-5.4%	-24.7%	3.4%
Los Angeles- Long Beach- Anaheim, CA	13.9%	-4.1%	19	-16.0%	-1.1%	-26.0%	9.3%
Chicago, IL	11.6%	0.2%	17	-15.2%	-6.3%	-22.7%	0.2%
Dallas-Fort Worth, TX	-3.3%	-0.6%	29	-27.4%	0.4%	-16.0%	0.4%
Philadelphia, PA	0.5%	-5.6%	17	-20.6%	-5.5%	-34.3%	12.2%
Houston, TX	-7.8%	-3.4%	25	-28.1%	5.7%	-15.4%	1.7%
Washington, DC	1.0%	1.9%	12	-27.8%	-2.4%	-33.1%	10.6%
Miami-Fort Lauderdale, FL	14.4%	3.4%	43	-15.5%	-1.4%	-9.7%	-0.2%
Atlanta, GA	-0.4%	-6.6%	34	-29.4%	-1.4%	-9.1%	0.5%
Boston, MA	10.6%	4.7%	11	-29.2%	-35.0%	-24.8%	8.0%
San Francisco, CA	6.2%	6.0%	13	21.8%	-14.8%	-11.3%	10.1%
Detroit, MI	-8.9%	-5.1%	11	-23.5%	-4.4%	-23.0%	4.1%
Riverside, CA	-1.8%	-0.8%	21	-20.3%	7.3%	-34.4%	5.3%
Phoenix, AZ	-14.4%	-9.4%	24	-17.0%	5.7%	-24.8%	8.6%
Seattle, WA	9.2%	7.4%	6	-17.5%	-8.3%	-38.4%	5.6%
Minneapolis-St. Paul, MN	3.8%	-4.1%	18	-15.7%	-17.4%	-19.2%	4.0%
San Diego, CA	N/A	N/A	12	-23.5%	-2.6%	-33.5%	8.2%
St. Louis, MO	7.1%	4.1%	7	-29.7%	-0.2%	-26.7%	7.0%
Tampa, FL	N/A	N/A	24	-17.8%	1.6%	-23.4%	2.0%
Baltimore, MD	5.4%	-1.6%	18	-24.6%	8.2%	-38.8%	4.2%
Denver, CO	-0.1%	-2.5%	9	-27.5%	-13.6%	-20.4%	5.9%
Pittsburgh, PA	N/A	N/A	10	-11.6%	0.9%	-24.4%	13.3%
Portland, OR	5.6%	6.0%	8	-26.6%	-6.7%	-24.6%	1.8%
Charlotte, NC	-2.7%	1.3%	11	-33.7%	-3.4%	-30.0%	5.2%
Sacramento, CA	11.9%	-1.9%	13	-26.9%	2.6%	-23.5%	2.7%
San Antonio, TX	N/A	N/A	31	-27.3%	1.0%	-11.8%	2.3%
Orlando, FL	N/A	N/A	22	-14.8%	7.0%	-12.1%	0.1%
Cincinnati, OH	-2.4%	-8.8%	5	-19.8%	4.5%	-31.3%	17.2%
Cleveland, OH	0.7%	3.3%	15	-25.8%	-3.0%	-35.7%	9.9%
Kansas City, MO	1.3%	-5.8%	5	-32.2%	-7.2%	-32.7%	12.1%
Las Vegas, NV	-6.4%	-3.4%	30	-21.0%	9.3%	-22.4%	3.2%
Columbus, OH	5.8%	-8.2%	6	-33.1%	-5.5%	-29.6%	7.1%
Indianapolis, IN	-12.8%	-4.4%	5	-29.8%	-12.4%	-29.9%	11.4%
San Jose, CA	-19.8%	-14.6%	20	25.7%	-16.1%	-26.4%	7.0%
Austin, TX	-10.9%	-9.9%	10	-20.8%	-1.1%	-18.2%	9.4%
Virginia Beach, VA	N/A	N/A	56	-11.8%	6.0%	-32.7%	9.4%
Nashville, TN	N/A	N/A	34	-36.8%	-4.9%	-5.6%	1.9%
Providence, RI	-1.6%	3.2%	20	-19.0%	-6.3%	-30.9%	8.4%
Milwaukee, WI	N/A	N/A	30	-12.2%	-6.8%	-12.9%	6.9%
Jacksonville, FL	-8.0%	-3.0%	24	-23.6%	7.2%	-20.9%	2.7%
Memphis, TN	N/A	N/A	9	-25.6%	-5.6%	-32.4%	10.2%
Oklahoma City, OK	N/A	N/A	11	-20.4%	3.4%	-22.2%	10.5%
Louisville, KY	0.5%	1.4%	9	-26.1%	2.2%	-33.1%	3.1%
Hartford, CT	0.1%	1.0%	9	-23.1%	-7.0%	-37.0%	8.8%
Richmond, VA	N/A	N/A	6	-19.1%	9.1%	-24.5%	9.1%
New Orleans, LA	-20.1%	-21.7%	21	-27.9%	14.1%	-29.5%	5.8%
Buffalo, NY	36.2%	2.8%	9	-25.4%	-10.9%	-26.2%	8.4%
Raleigh, NC	1.3%	7.4%	7	-31.1%	3.4%	-25.6%	3.1%
Birmingham, AL	-0.8%	-8.3%	17	-20.2%	-10.5%	-25.9%	4.3%
Salt Lake City, UT	10.5%	-0.8%	12	-38.8%	-16.3%	-31.4%	6.1%
*Table ordered by market size

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FAQ

What are the recent trends in Zillow's housing market report?

Zillow's report indicates a fast-selling housing market with homes going under contract in an average of 20 days, despite a 4% decline in newly pending sales.

How has the median list price changed according to Zillow's report?

The median list price has increased to $338,760, reflecting a 4.3% rise year-over-year.

What is the status of housing inventory in Zillow's latest report?

The total for-sale inventory is down 22.4% compared to last year, indicating a significant shortage.

What percentage of active listings experienced price cuts in Zillow's report?

Only 4.1% of active listings underwent price cuts, a drop from 5.6% a year earlier.