HOUSTON – The supply of homes for sale in Houston continued to shrink in early May as the coronavirus pandemic led many sellers to postpone listing their properties.
The Houston Association of Realtors (HAR) reported just 2,878 new listings were added last week, a 17.5 percent decline from the 3,488 new listings in the comparable week of 2019.
“Ongoing stay-at-home and work-at-home directives tied to the coronavirus crisis have understandably discouraged many sellers from entering the market,” HAR said.
Several homeowners who previously listed their properties have withdrawn them from the market and removed them from the Multiple Listing Service (MLS).
Last week, HAR recorded 1,727 withdrawals, a 39.4 percent increase from the same week a year ago. The report covers activity for the seven-day period ending May 4.
Inventory is tight nationwide, noted Lawrence Yun, chief economist for the National Association of Realtors. “More home sellers are needed to relieve the acute inventory shortage,” Yun said.
At the end of April, 25,457 homes were listed for sale in Houston, down 6.1 percent from the 27,117 homes on the market in April 2019.
Home sales are expected to decline sharply in April—roughly 20 percent—according to Jim Gaines, chief economist at the Real Estate Center at Texas A&M University.
Houston’s market faces additional pressure from a downturn in the energy industry, compounding the housing slowdown.
Ted C. Jones, chief economist at Stewart Title Guaranty, forecasts a 35 percent drop in second-quarter sales and a 25 percent decline for the year.
May 7, 2020 Realty News Report Copyright 2020
Read the Book by Ralph Bivins, Editor of Realty News Report
Houston 2020: America’s Boom Town – An Extreme Close Up
Available on Amazon