Home Prices Keep Climbing As National Median Now Up 14% from Last Year

Rhea-AI Summary

The median home sale price in the U.S. soared by 14% from 2019, reaching a record high of $319,978, according to a report by Redfin as of September 25, 2020. This increase is the largest since August 2013. Key takeaways include a 6.6% rise in home prices since July, 29% growth in pending home sales year over year, and a 28% decrease in active listings compared to 2019. The Redfin Homebuyer Demand Index showed a remarkable 28.4% increase from pre-pandemic levels, indicating sustained demand amidst limited supply.

Positive

• Median home sale price increased by 14% to $319,978, the highest on record.
• Pending home sales climbed by 29% year over year.
• New listings of homes for sale increased by 6% compared to last year.
• Average sale-to-list price ratio reached an all-time high of 99.4%.

Negative

• Active listings fell by 28% from 2019, indicating a significant supply shortage.
• Despite new listings, supply does not meet demand, leading to competitive pricing for buyers.

SEATTLE, Sept. 25, 2020 /PRNewswire/ -- (NASDAQ: RDFN) — The median home sale price increased 14% from 2019 to $319,978—the highest on record—according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The 14% year-over-year increase was the largest since August 2013.

Below are other key housing market takeaways for 434 U.S. metro areas during the 4-week period ending September 20.

• Since the four-week period ending July 5, home prices have increased 6.6%. Over that same period in 2018 and 2019, prices declined an average of 3.7%.
• Pending home sales climbed 29% year over year.
• New listings of homes for sale were up 6% from a year ago.
• Active listings (the number of homes listed for sale at any point during the period) fell 28% from 2019 to a new all-time low. The rate of year-over-year supply declines has remained consistent at this level for the past couple of months.
• 45.7% of homes that went under contract had an accepted offer within the first two weeks on the market. This has also held relatively steady for the last 16 weeks.
• The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, rose to 99.4%—an all-time high and 1.2 percentage points higher than a year earlier.
• For the week ending September 20, the seasonally adjusted Redfin Homebuyer Demand Index was up 28.4% from pre-pandemic levels in January and February.

"The recent boost in the number of people listing their homes for sale still falls far short of demand from folks looking to buy homes right now," said Redfin chief economist Daryl Fairweather. "Unfortunately, that means little relief for homebuyers, especially those seeking an  affordable home. I don't expect the double-digit home-price increases to subside before early 2021."

Even though we're in a historic seller's market, it remains critical that sellers price their homes right, according to Washington, D.C. Redfin listing agent Mary Bazargan.

"Some sellers think that because inventory is low and houses are selling quickly, they can afford to overprice their home," explained Bazargan. "When we price a new listing conservatively, we're getting multiple offers and those homes are often selling above list price, but if we push the price aggressively high, the home tends to sit on the market for a while and won't get multiple offers."

To view the full report, including charts and methodology, please visit: https://www.redfin.com/blog/us-home-prices-up-14-percent/.

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 also run the country's #1 real estate brokerage search site, 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 current median home sale price is $319,978.

How much have pending home sales increased year over year?

Pending home sales have increased by 29% year over year.

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

Active listings dropped by 28% compared to 2019.

What is the significance of the 14% increase in home prices?

This 14% increase is the largest since August 2013.

How much did the Redfin Homebuyer Demand Index increase?

The Redfin Homebuyer Demand Index rose by 28.4% from pre-pandemic levels.