First New-Listings Decline in 5 Months Portends a 2021 Housing Frenzy to Rival 2020

Rhea-AI Summary

The median home sale price rose 14% year over year to $320,025, as reported by Redfin on January 15, 2021. Key findings indicate that pending home sales increased by 35%, while new listings declined by 3%, marking the first decrease since July. Active listings plummeted by 33% to a record low. Moreover, 38% of homes accepted offers within two weeks, illustrating increased buyer competition. Additionally, the Redfin Homebuyer Demand Index was up by 40% from pre-pandemic levels. Mortgage purchase applications increased by 8% week-over-week.

Positive

• Median home sale price increased 14% year-over-year to $320,025.
• Pending home sales rose 35% year-over-year.
• 38% of homes went under contract within two weeks, up from 27% a year ago.
• Redfin Homebuyer Demand Index increased by 40% from pre-pandemic levels.

Negative

• New listings of homes for sale decreased by 3% from a year earlier.
• Active listings fell 33% from 2020, reaching an all-time low.

SEATTLE, Jan. 15, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — The median home sale price increased 14% year over year to $320,025, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Below are other key housing market takeaways for more than 400 U.S. metro areas during the 4-week period ending January 10.

• Pending home sales were up 35% year over year.
• New listings of homes for sale were down 3% from a year earlier—the first decline since July.
• Active listings (the number of homes listed for sale at any point during the period) fell 33% from 2020 to a new all-time low.
• 38% of homes that went under contract had an accepted offer within the first two weeks on the market, well above the 27% rate during the same period a year ago.
• The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, declined slightly to 99.3%—still 1.5 percentage points higher than a year earlier.
• For the week ending January 10, the seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other services from Redfin agents—was up 40% from pre-pandemic levels in January and February of 2020.
• Mortgage purchase applications increased 8% week over week (seasonally-adjusted) and were up 10% from a year earlier (unadjusted) during the week ending January 8. For the week ending January 14, 30-year mortgage rates edged up to 2.79%.

"Buyers are likely disappointed by the lack of new homes listed in the past month," said Redfin chief economist Daryl Fairweather. "But that's not stopping them from making offers on what is on the market, which is sending pending sales up. It's looking like 2021 will see a housing market frenzy that will rival what we experienced in 2020."

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-new-listings-down-3pct/

About Redfin

Redfin (www.redfin.com) is a technology-powered residential real estate company, redefining real estate in the consumer's favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we are the #1 nationwide brokerage website, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 90 markets in the United States and Canada. Since our launch in 2006, we have saved our customers over $800 million and we've helped them buy or sell more than 235,000 homes worth more than $115 billion.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

 

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SOURCE Redfin

FAQ

What is the current median home sale price according to Redfin?

The median home sale price is $320,025, reflecting a 14% increase year over year.

How much did pending home sales increase year over year?

Pending home sales increased by 35% year over year.

What was the change in new listings of homes for sale?

New listings of homes for sale were down 3% from a year earlier.

How quickly are homes selling according to the latest Redfin report?

38% of homes accepted offers within two weeks on the market, up from 27% last year.

What is the Redfin Homebuyer Demand Index?

The Redfin Homebuyer Demand Index increased by 40% from pre-pandemic levels.

How did mortgage applications change recently?

Mortgage purchase applications increased by 8% week over week and were up 10% from a year earlier.