Sellers of high-end homes with the flexibility to take a wait-and-see approach on the pandemic recession jumped back into the market nationwide in June, according to a new report from Zillow.
Zillow listings for the top fifth most expensive homes plummeted by more than 50% year over year in May, but that figure bounced back to a year-over-year decline of 9% in June.
Chicago saw a dramatic turnaround in June, with new listings up a whopping 45.9% from the previous month. The city followed the national year-over-year figure closely with a reported 6.8% decline in June. The month-over-month median list price was up 2.8% to $343,776.
The Zillow report notes that affordable homes have not seen the same rebound with new listings down 29% year over year. That could be a result of “widespread unemployment, decreased market activity, and other financial constraints that present challenges for both buyers and sellers at the bottom of the market.”
“The way unemployment has hit in this recession — with more layoffs in service, retail, food, entertainment, and other jobs unable to be done remotely — could result in vastly different experiences on either end of the housing price spectrum,” Zillow economist Jeff Tucker said in a press release. “Millions of Americans who lost jobs or income are only able to stay in their homes right now thanks to extraordinary forbearance programs, which means they likely have to pause their plans to trade up or move to a new city. But for wealthier homeowners whose employment has remained stable and are looking to trade up, now may be an opportune time to sell and lock in a record-low mortgage rate on their dream home.”