Houston Seller Retreat: New Listings Fall 28% as Homeowners Delay Sales
NAR Chief Economist Lawrence Yun. Photo credit Ralph Bivins, Realty News Report.
HOUSTON – (Realty News Report) – Sellers largely stayed away from the Houston housing market in April, reflecting a nationwide pullback brought on by the spread of Covid-19.
New listings in the Houston area totaled just 9,724 in April, a 27.6 percent decline from the 13,434 homes listed in April 2019, the Houston Association of Realtors reported.
The HAR has suspended online advertising of open houses on HAR.com. With concerns about the coronavirus high, Realtors have shifted to virtual showings to limit in-person contact and reduce foot traffic inside homes. Homeowners’ reluctance to begin the selling process mirrors trends seen across the country.
“Nearly 70% of Americans have secure employment and those interested in purchasing homes are looking at the enticing mortgage rates,” said NAR Chief Economist Lawrence Yun. “One in five potential buyers have dropped out of the market due to job loss concerns. The massive financial stimulus package may help replace a portion of lost income until the economy gradually reopens. More home sellers are needed to ease the acute shortage of inventory.”
Many homeowners pulled listings off the market in March as the coronavirus threat intensified late in the month.
The Houston Association of Realtors recorded 1,496 listings withdrawn from the Multiple Listing Service in March, with many removals occurring in the final days of the month.
Nationally, Redfin reported 28,140 homes were taken off the market for the week ending March 29—an increase of 148 percent compared with the same week in 2019.
The pandemic and its severe economic consequences interrupted what had been a very strong housing market in Houston, driven by low interest rates and local job growth.
At the end of April, 25,457 homes were for sale in the Houston area, down 6.1 percent from 27,117 listings in April 2019.
