Redfin found that while the supply of homes priced under $250,000 saw a 34% increase between March 15 and April 20, it is still down 59% year-over-year.
The new supply for homes for sale over $1 million fell 29 points from the year prior, Redfin said. As of March 15, there were 66,528 homes for sales priced above $1 million across the 50 largest U.S. metros.
Between March 15 and April 20, 10,338 more homes were listed but 10,708 were taken off the market unsold, for a decline in the supply of 1%. During the same time supply increased by 28%.
“There has been a drastic shortage of affordable starter homes for the past several years,” said Redfin Lead Economist Taylor Marr. “Homeowners selling in an affordable price range are still experiencing plenty of demand from buyers right now, even in the midst of the coronavirus pandemic. Owners of much more expensive homes, however, are seeing a slack in demand, likely because buyers of higher-end homes have been influenced by tight credit for jumbo loans and volatile economic and financial market conditions. Luckily, many of these homeowners have the luxury of waiting until the time is right to list their homes for sale.”
San Francisco was found to have the largest decline in the number of homes for sale added to the market, with a 32% decline in supply. San Francisco had a 107% increase last year.
Housing supply in Boston fell 31%; San Jose experienced a drop of 41%; Detroit reported a fall of 13%; and housing supply in Buffalo, New York, fell 29%.
Just two of the 50 largest metros reported an increase in home supply. Salt Lake City’s supply of homes, rising from 66% to 72%. Phoenix also saw an increase to 54% from the prior years’ 49%.
The U.S. Census Bureau reported that new-home sales in March 2020 fell 15.4% from February and 9.5% annually.
An estimated 627,000 new-home sales occurred in March compared to 741,000 in February.