Homebuying Demand is Higher Than Before the Pandemic
May 21, 2020
To handle the rapid rise in home-buying demand, Redfin has been bringing staff back from the furlough that was initiated in early April. Of the roughly 1,000 people who went on furlough, Redfin has already welcomed approximately 350 employees back to work.
New cases of coronavirus have certainly tapered from their peaks back in April, but over 20,000 new cases are still being reported daily in the
Mortgage rates have stimulated the housing market, with the average 30-year fixed rate mortgage at record lows of 3%. Now a new report from the
The great migration out of America's major metropolitan areas is picking up steam
The big question is whether this demand surge will be a quick burst of buyers who deferred their plans during the shutdown or if it'll last much longer as people hunt for more space and more affordable homes. Search data from Redfin.com suggests that migration from expensive metropolitan hubs to smaller cities and towns has been happening for years, but it seems to be gaining steam since the coronavirus outbreak.
More and more, buyers are using digital technology to see homes without having to be there in person. Over the past week, just over 1 in 4 new Redfin clients had their first home showing via video chat and video-chat tours led to 11% of the offers Redfin agents wrote in that same time.
Perhaps the biggest shift in viewing homes is the rising popularity of online 3D walkthroughs that let a buyer tour a home virtually anytime of day or night. For years, Redfin agents have been creating 3D walkthroughs for Redfin clients using
Inventory of homes for sale has finally stabilized after hitting rock bottom in early May
The number of homes for sale is down 23% for the seven days ending
Redfin agents across the country are saying the spring market is about to kick off after a two-and-a-half month delay. Some sellers have gotten more comfortable putting their homes on the market and agents have gotten more skilled at showing homes safely while social distancing. Other sellers worry that a second wave of the virus may shut down the economy again later this year and want to list now to take advantage of the strong demand right now.
Low inventory is constraining the number of home sales, but prices are rising
Whether it's increasing comfort or rising concerns about the future, more sellers put their homes on the market in the seven days ending
For the seven days ending
In many markets, there aren't enough homes for sale, so a lot of the homebuying demand is unmet. More than 45% of homes under contract in the seven days ended
As a result, prices are rising. The median listing price is up 6% for the seven days ended
To read the full update, please visit: https://www.redfin.com/blog/home-buying-demand-reaches-new-peak-demand-unleashed/
To view charts highlighting more housing data from this past week, please visit: https://www.redfin.com/blog/sellers-continue-jump-back-into-housing-market-demand-recover
Redfin (www.redfin.com) is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 90 major metro areas across the
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the
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Redfin Journalist Services: Isabelle Novak, (414) 861-5861, firstname.lastname@example.org