Shortfall in New Supply of Homes for Sale Felt Most Acutely at the High End
While we are seeing positive trends with the majority of states beginning to open back up, COVID-19 has already exacerbated the home supply shortage the country was experiencing prior to the pandemic outbreak. The effects of that will vary depending on location. The top 10 hardest hit markets are mainly in the Northeast, Midwest and on the West Coast. Five of the top 10 least affected markets are in the South, proving a famous real estate addage, “location, location, location” true once again. Regardless of your location, the main trend is the dramatic drop off in high-end homes for sale, those $1M and up experiencing a -1% growth rate compared to 28% last year for the same time period. While it can sound concerning, if you are a broker or marketer of high-end homes, less supply means your property will have a better chance of being seen and many will be able to name their selling price.