The number of newly built homes on the market decreased 10.5 percent year-over-year in April, according to a new report from Redfin.
The decline was the smallest in 2020. Meanwhile, Redfin said the supply of existing homes dropped 24 percent during the same time period.
During April, 20 percent of homes on the market were newly built homes, representing the largest share since at least 2012.
“Builders are running a business and focused on the bottom line, so they need to clear their inventory as quickly as possible at any given time, especially during an economic downturn,” Redfin Lead Economist Taylor Marr said in a release.
“Homeowners, on the other hand, decide to move, list and sell when the time is right, for the right price, and sometimes even to the right buyer,” Marr said. “For many homeowners, a pandemic is not the ideal time to move and have strangers come through their homes, so those who have the flexibility are putting off listing for now.”
Even so, the report said builders have been putting fewer houses on the market than they did last year as they’ve had to halt projects amid restrictions on construction activity and permitting delays.
Redfin said new listings of newly constructed homes fell 12 percent month-over-month in April. New listings of existing homes dropped 36.3 percent during the same time period.