Housing Market Is “Bananas," Demand Surges 25% Above Pre-Pandemic Levels

Now that buyers have had a taste of freedom, it seems that neither protests nor a possible resurgence of the pandemic can deter them from finding their new homes. For the week ending June 7, demand is now 25 percent higher than it was in January and February on a seasonally adjusted basis, according to Redfin. “It’s just bananas, with so few listings and so many buyers,” Hazel Shakur, Redfin Maryland agent, says. This is the eighth straight week of growing demand. Listings are on the rise as well, creeping up 6 percent from the week prior to 15 percent below last year’s levels. Though inventory will still be a thorn in the housing market’s side, sellers are finally feeling more comfortable with listing their properties. They’re still worried about the health risks, but this housing bonanza is too good to sit out.

It seems that nothing can deter homebuyers. Seasonally adjusted demand for the week of June 1 – June 7 is now 25% higher than it was pre-pandemic in January and February, marking the eighth straight week of rising demand.

Our abiding concern in May was about the number of homes for sale, but that’s improving too. After falling to 21% below last year’s level the week of May 25 – 31, new listings last week continued their recovery; last week’s new listings were 15% below last year’s level.

Listings accepting an offer improved as well. Two weeks ago, this number was down 11% year-over-year, but for the week of June 1 – June 7 it was 9%. With demand surging and supply recovering, we expect sales to strengthen; mortgage purchase applications were up 7% year-over-year in the last week of May and up even more, 13%, in the first week of June.

Read More