The inventory of existing homes has dropped significantly in recent weeks as many home owners de-list their properties due to an uncertain future brought on by a global pandemic. According to new data, the supply of existing homes on the market nationwide dropped by a startling 24% in April, while newly-built inventory fell just 10.5%.
Broken down by property-type, existing condo inventory recorded the largest slide in inventory with new listings falling by nearly 30%. By comparison, newly listed single-family homes dropped by just 9.8%.
As existing inventory keeps falling, however, new construction properties are now occupying a larger piece of the inventory pie, resulting in 1 out of every 5 homes sold in April being new construction. That figure represents the largest market share since at least 2012, as well as an increase from 1 out of every 6 homes around this time last year.
Oddly enough, now might be an ideal time to buy new construction with more builders offering incentives and price drops in hopes of maximizing their bottom line during an economic downturn.