The new supply of homes for sale listed above $1 million fell 29 percent between mid-March and mid-April, according to an analysis by Redfin.
There were 66,528 homes for sale priced at or above $1 million across the 50 largest U.S. metro areas March 15. Between March 15 and April 20, 10,338 more were listed for sale, but 10,708 were taken off the market unsold, for a total decrease in supply of 1 percent, according to Redfin’s analysis.
Redfin said supply increased 28 percent during the same period in 2019.
“There has been a drastic shortage of affordable starter homes for the past several years,” Redfin Lead Economist Taylor Marr said in a release. “Homeowners selling in an affordable price range are still experiencing plenty of demand from buyers right now, even in the midst of the coronavirus pandemic.
“Owners of much more expensive homes, however, are seeing a slack in demand, likely because buyers of higher-end homes have been influenced by tight credit for jumbo loans and volatile economic and financial market conditions,” Marr said. “Luckily, many of these homeowners have the luxury of waiting until the time is right to list their homes for sale.”
Redfin said the largest declines in luxury-home supply were in San Francisco (down 75 percent); Boston (down 66 percent); and San Jose, Calif. (down 56 percent).