Year-Over-Year Drop in Homebuying Demand Reported

Redfin revealed that the demand for homes was down 25% year-over-year for the week ending on April 23. 

According to Redfin, which looked at the statistics of growing would-be buyers who were taking tours of the company’s real estate properties, home buyer demand has shown signs of being on its way to recovery. However, optimism is still cautious, as this improvement is best described as being similar to small, halting steps versus a full-on sprint. 

Again, experts urge consumers and sellers to keep in mind that it is still in the early days, making it much too soon to say for sure whether demand will continue to climb or experience a setback along its road to recovery.

The report also points out how the coronavirus has shifted the tides of the way real estate operates—and thrives—with Redfin claiming that digital commerce is the remedy that will heal what ails us in today’s housing industry. The real estate company backs up this claim by revealing that almost 33% of its home tours took place with the help of digital technology, specifically, video chats.

The success of these newer modes of sales were self-evident, with statistics for Redfin revealing that during the week ending on April 12, one in eight among the offers that the company received on homes were made by those would-be buyers that participated in the online chats.

Redfin agent Mara Gemond said that while this new way of doing business was adopted largely due to the coronavirus complications regarding in-person showings, this method seems to be proving fruitful, making many believe it will be adopted for the long-haul and used well into the future. 

“There are still some kinks to work out. My kids laugh at me because I have nine different video apps on my phone,” Gemond said. 

The U.S. Census Bureau revealed that U.S. housing data fell off the cliff during March, with permits, starts, and completions all recorded declines. 

Housing permits fell 6.8% from February to 1.35 million, housing completions were down 6.1% monthly to 1.22 million, and housing starts recorded a 22.3% decline from February to 1.21 million. 

Every region in the nation posted declines in permits, with the largest drop being the 12.7% drop in the midwest. The northeast posted a 32.5% decline in housing starts from February to March. 

Realtor.com’s Senior Economist George Ratiu said the COVID-19 pandemic expands in the U.S., “economic activity has been encased in a block of ice.” 

“With consumers confined at home in most states, housing markets are feeling the chill,” he said.