SAN FRANCISCO, Calif. (KRON) – Zillow economist Skylar Olsen says the nation is seeing more high-end homes listed on the market than any other kind.
Possibly a sign sellers believe more buyers are looking to make a purchase.
Olsen says new listings are still down 39-percent overall from last year, a dramatic drop accelerated by the novel coronavirus pandemic.
Overall, new listings have been rising for three straight weeks and, higher-end homes appear to be outperforming what’s considered more affordable.
“This is one of those knock on wood moments, but we do expect activity to improve from the radically low bottoms that we fell. At least our national forecast has a steady recovery projected into the future, of roughly 10-percent growth in the number of sales every month, which would put us back to February numbers, which honestly were looking very good, much better than previous years. It’ll put us back to February numbers around mid-end of 2021 because of that gradual and slow recovery,” Olsen said.
Zillow, an online real estate database company, defines high-end in the San Francisco metro area as $1.5 million and above.
In the San Jose metro area, the threshold for higher-end homes is $1.9 million.
Last week in San Francisco, there was a 12.4 percent increase in high-end home listings and a 13.3 percent increase in more affordable listings.
During that same time period in the South Bay, there was a 76.7 percent increase in expensive listings, compared to a 25.1 percent increase in more affordable homes.
“From frustrated years, home shopping seasons with low-low inventory, there were probably enough buyers reaching major life stages of home ownership, that it behooves them to look at this time,” Olsen said.
Olsen says despite the paralyzing effects on the housing market caused by the pandemic, home prices have stayed mostly steady though she expects home values may fall some three-percent nationally by October.