New listings fell sharply in the first week of April in the Greater MSP region relative to 2019.
Minneapolis Area REALTORS tracks market activity weekly and reported that new listings decreased 27.7% for the week ending April 4th. This is the first major shift in home listing activity during the COVID-19 crisis relative to activity in 2019. It is also a notable shift in listing behavior from February and March when the number of listings were tracking at levels higher than 2019.
April is historically a busy month for new listings as homeowners prepare for the spring and summer buying season. Market analysis from Minneapolis Area REALTORS reminds us that new listing activity took off this time last year due to pent up demand after inclement weather, so a relative decline this year isn’t entirely tied to COVID-19. Nevertheless, we see this as yet another indicator to continue to monitor as we track economic health in the region. You can find more great housing market analysis from Minneapolis Area REALTORS at their website and their latest weekly market report found here.
Nationwide, listings down 43.6% year-over-year the week ending April 3rd
While the number of new listings dropped substantially in the Greater MSP region in early April, the shift is not as dramatic as what many of our peers are experiencing. To get a relative picture, we looked to Redfin for comparative data on home listing trends. According to Redfin, for the week ending April 3rd the Greater MSP region experienced a 29.8% drop in new listings from a year ago (slight variation from Minneapolis Area REALTORS figures). While all peers experienced a noticeable drop in listings this week, only Austin, Denver, and Portland experienced smaller declines than MSP.
Greater MSP home listing trends similar to Portland, Denver, Austin.
There are some important considerations when comparing COVID-19 impact on home listing activity by region. First, exposure to COVID-19 did not occur uniformly across regions so trends in our market the first week of April may actually be reflected a week or two earlier in some of our peer regions. To account for this concern, we analyzed data for the last three weeks to look for regional variation. We found that large population centers like San Francisco, Chicago and Boston have been experiencing consistently high declines in listing activity relative to a year ago. We also found that the Greater MSP region’s listing behavior looks most like Portland, Denver and Austin. These are healthy growing economies that were on track for big upticks in springtime home listings that were cut off sharply by shifting confidence and mandatory lockdowns. Meanwhile, Pittsburgh’s drastic 79.1% decline represents what could be more systemic housing challenges in the market.
We see new listings as a measure of confidence in the health of a regional economy. An individual or family chooses to list their home if they feel that the market will bear a price that meets or exceeds the value of the home. While new listings are down, the relative performance of MSP is yet another signal to us that the region is displaying resiliency through this crisis.