Homeowners Pull Listings Off Market as COVID-19 Surges
John Nugent, chairman of the Houston Association of Realtors
HOUSTON – (Realty News Report) – In March, as concerns about the coronavirus intensified, a large number of homeowners pulled their properties off the market.
The Houston Association of Realtors reported that 1,496 listings were withdrawn from the Multiple Listing Service last month, mirroring a national trend as sellers responded to the spread of COVID-19.
Across the United States, Redfin reported that 28,140 homes were removed from the market for the week ending March 29 — a 148 percent increase compared with the same week in 2019.
The pandemic and its sudden economic consequences disrupted what had been an unusually strong housing market, driven by low interest rates and job growth in Houston.
Despite the late-month pullbacks, Houston still recorded 7,566 home sales in March, an 8 percent increase from 6,995 sales in March 2019.
However, Houston’s robust home-sales market is entering a pause. Pending sales slipped 2 percent, and inventory tightened to a 3.5-month supply. This marks the first substantial reversal in the local housing market in years.
Nationally, some 17 million Americans filed unemployment claims over three weeks, and ongoing business closures and furloughs are driving further economic deterioration.
Houston faces an added blow from the collapse in oil prices, which briefly fell below $20 per barrel before rebounding to roughly $25. Energy-sector layoffs and furloughs are spreading as firms cut billions from capital spending.
Patrick Jankowski, an economist with the Greater Houston Partnership, estimated the region could lose more than 150,000 jobs this year. With business activity constrained by the pandemic, the timeline for recovery remains unclear.
“What’s about to happen to Houston real estate reminds me of Hurricane Harvey — we’re bracing for impact but do not yet know the full market consequences,” said HAR Chairman John Nugent of RE/MAX Space Center.
For safety, realtors have shifted to virtual home showings and canceled open houses.
Beyond safety concerns, many prospective sellers are choosing to delay listing their homes because of economic uncertainty, said Ralph McLaughlin, chief economist at Haus. This pattern is occurring nationwide.
In Denver, 761 listings were withdrawn in March, with 625 of those removals occurring during the final two weeks of the month, according to reporting by Aldo Svaldi of the Denver Post.
Redfin also reported that pending sales nationwide fell 42 percent in the last week of March as the pandemic tightened its hold on the housing market. The company announced significant workforce reductions, furloughing 41 percent of its agents and laying off 7 percent of employees.
The final week of March offered stark indicators for the months ahead. With rising job losses, shelter-in-place orders and virus-related delays among home inspectors, appraisers and closing agents, the spring selling season faces major challenges.
