Pandemic Curbs Home Sales By 20% Year-Over-Year, Prices Remain Strong
Fewer sellers, fewer buyers: The first full month of coronavirus stay-at-home orders weighed on April home sales, causing them to drop an average of 20.2% compared to a year ago. Inventory in the report’s 53 markets similarly tumbled by 20.5% year-over-year, while the Median Sale Price of $276,000 was up 9.3%.
Restrictions to prevent the spread of COVID-19 turned what is traditionally the year’s fifth busiest month for home sales back to slumbering wintertime levels. Four markets – New York, Detroit, Miami and San Francisco – posted year-over-year sales declines of more than 40%. Just two markets – Minneapolis, MN and Billings, MT – reported an increase, while eight saw declines of less than 10%.
Like March, April is a transition month toward peak home sales in the summer. In a typical year, the busiest month is often May or June, with July and August being close behind.
Days on Market dropped seven days to 46 year over year, setting a new low for April in the report’s 12-year history. By contrast, Months Supply of Inventory grew from 3.0 to 3.5.
The Median Sales Price of $276,000 also was a report record for April.
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