Sales Activity is Ticking Up, But Buyer Options Remain Limited

Rhea-AI Summary

Home buyer demand is increasing, with newly pending sales rising 2.8% week-over-week and 17.7% month-over-month, according to Zillow's Weekly Market Report. Major cities like Philadelphia, New York, and Miami saw significant growth in pending sales. However, total inventory has declined by 0.4% from last week and is 17.1% lower than last year. List prices have also increased, with a median of $332,680, but there may be a projected 1.8% drop in home values from April to October 2020. This indicates a potential market shift in the latter half of the year.

Positive

• Newly pending sales rose 2.8% week-over-week, signaling increased buyer interest.
• Seventeen of the largest U.S. metros saw significant YOY increases in pending sales, with Philadelphia leading at 62.7%.
• Median list prices increased 2.5% year-over-year.

Negative

• Total inventory fell 0.4% week-over-week and is 17.1% lower than last year.
• New listings decreased by 16.6% annually.
• Forecasted 1.8% decrease in home values from April to October 2020.

SEATTLE, June 19, 2020 /PRNewswire/ -- Home buyer demand continues to grow, but their choices became even more slim last week, according to -27151%2F&a=Zillow%27s+Weekly+Market+Report" rel="nofollow">Zillow's Weekly Market Reportⁱ. Newly pending sales rose from the previous week, but new listings and total listings fell. 

Newly pending sales continue slow climb

• Newly pending sales grew 2.8% week over week, and were 17.7% higher than a month earlier. 
• Among the 35 largest U.S. metros, newly pending sales have grown the most since last month in Philadelphia (up 62.7% month over month), New York (up 58.1%) and Miami (up 37.9%). 

Inventory took a small step back last week

• Total for-sale inventoryⁱⁱ fell by 0.4% from the previous week, and is now 17.1% below last year's level. 
• 3.8% fewer new listings came onto the market than the week prior. New listings are up 13.9% month over month, but down 16.6% annually. 

List prices continue to rise, but home values may be on the verge of a modest fall

• The median list price is $332,680, up 2.5% year over year and 0.8% from the previous week. 
• Despite the continued growth of list prices, Zillow's -27322%2F&a=May+Real+Estate+Market+Report" rel="nofollow">May Real Estate Market Report may have revealed the first indication that home values will fall in the second half of the year. The month-over-month change in home values slowed noticeably from April to May. 
• The most recent -26975%2F&a=forecast" rel="nofollow">forecast from Zillow's economic research team shows an expected 1.8% drop in prices from April to October 2020, with a steady recovery through 2021.

 

Metropolitan Area*	Newly Pending Sales - MoM	Newly Pending Sales - WoW	Total For- Sale Listings - YoY	New For- Sale Listings - YoY	New For- Sale Listings - MoM	Median List Price - YoY
United States	17.7%	2.8%	-17.1%	-16.6%	13.9%	2.5%
New York, NY	58.1%	-1.6%	-27.4%	-6.1%	57.8%	2.2%
Los Angeles, CA	33.9%	7.6%	-25.7%	-12.5%	13.9%	6.5%
Chicago, IL	31.2%	4.8%	-20.3%	-9.3%	29.8%	-2.8%
Dallas-Fort Worth, TX	14.3%	2.9%	-7.8%	-13.5%	6.4%	-2.4%
Philadelphia, PA	62.7%	3.4%	-34.3%	-6.9%	37.1%	10.9%
Houston, TX	18.4%	4.6%	-5.8%	-17.8%	1.5%	-0.7%
Washington, DC	8.1%	6.6%	-30.0%	-19.4%	13.1%	7.9%
Miami-Fort Lauderdale, FL	37.9%	14.9%	-9.9%	-3.4%	27.2%	-0.6%
Atlanta, GA	5.6%	1.1%	1.0%	-19.0%	22.6%	-2.7%
Boston, MA	30.9%	6.8%	-26.6%	-23.7%	15.9%	5.4%
San Francisco, CA	N/A	N/A	-13.0%	0.2%	16.7%	5.9%
Detroit, MI	15.0%	-3.6%	-14.6%	-16.5%	-8.2%	-1.5%
Riverside, CA	34.6%	2.1%	-27.2%	-19.1%	7.4%	3.1%
Phoenix, AZ	20.3%	6.1%	-21.5%	-9.8%	5.2%	5.8%
Seattle, WA	21.7%	9.7%	-36.0%	-26.9%	10.9%	3.1%
Minneapolis-St. Paul, MN	5.3%	0.0%	-12.4%	-5.2%	10.5%	2.2%
San Diego, CA	N/A	N/A	-28.1%	-16.6%	17.2%	3.7%
St. Louis, MO	4.4%	6.7%	-23.4%	-21.0%	6.9%	6.0%
Tampa, FL	N/A	N/A	-13.9%	-18.3%	2.4%	-0.3%
Baltimore, MD	10.4%	0.1%	-34.4%	-19.9%	10.7%	4.0%
Denver, CO	13.7%	10.2%	-11.4%	-15.5%	3.9%	3.7%
Pittsburgh, PA	N/A	N/A	-17.5%	-1.1%	34.0%	8.1%
Portland, OR	25.5%	9.2%	-17.7%	-29.2%	11.9%	0.2%
Charlotte, NC	-1.0%	-0.4%	-19.7%	-22.9%	-8.5%	2.1%
Sacramento, CA	35.6%	16.8%	-15.5%	-16.6%	13.6%	2.4%
San Antonio, TX	N/A	N/A	0.1%	-17.6%	9.5%	0.6%
Orlando, FL	N/A	N/A	-5.7%	-17.9%	5.5%	-1.3%
Cincinnati, OH	3.5%	-6.1%	-25.7%	-22.9%	7.9%	14.5%
Cleveland, OH	15.5%	0.7%	-34.9%	-18.4%	20.2%	7.5%
Kansas City, MO	17.8%	10.2%	-27.1%	-22.8%	9.5%	8.5%
Las Vegas, NV	28.8%	-0.1%	-17.4%	-26.2%	4.5%	1.2%
Columbus, OH	16.1%	18.0%	-23.7%	-20.5%	3.6%	5.2%
Indianapolis, IN	14.1%	-0.4%	-21.7%	-26.0%	-2.5%	6.8%
San Jose, CA	N/A	N/A	-23.9%	-9.2%	8.5%	1.8%
Austin, TX	21.1%	2.3%	-4.5%	-25.8%	5.3%	4.2%

*Metropolitan areas ordered by market size

About Zillow
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Millions of people visit Zillow Group sites every month to start their home search, and now they can rely on Zillow to help them finish it — with the same confidence, ease and empowerment they've come to expect from real estate's most trusted brand.

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i The Zillow Weekly Market Reports are a weekly overview of the national and local real estate markets. The reports are compiled by Zillow Economic Research and data is aggregated from public sources and listing data on Zillow.com. Newly pending sales and new for-sale listings data reflect daily counts using a smoothed, seven-day trailing average. Total for-sale listings and median list price data reflect weekly counts using a smoothed, four-week trailing average. For more information, visit www.zillow.com/research/.

ii Beginning with this report, total for-sale inventory numbers reflect weekly counts using a smoothed, four-week trailing average. Previous Zillow Weekly Market Reports have reported this metric using a smoothed, seven-day trailing average.

 

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SOURCE Zillow

FAQ

What is the recent trend in home buyer demand according to Zillow's report?

Home buyer demand is on the rise, with newly pending sales increasing by 2.8% week-over-week.

Which metro areas showed the highest increase in newly pending sales?

Philadelphia, New York, and Miami showed the highest increases in newly pending sales at 62.7%, 58.1%, and 37.9% month-over-month respectively.

How has the total for-sale inventory changed?

Total for-sale inventory decreased by 0.4% from the previous week and is 17.1% lower than last year.

What is the current median list price for homes?

The median list price for homes is currently $332,680, which is up 2.5% year-over-year.

What does Zillow forecast for home values in the near future?

Zillow forecasts a 1.8% drop in home values from April to October 2020.