Home Prices Up 14%, Pending Sales Rise 34%

Rhea-AI Summary

The latest report from Redfin reveals that the median home sale price surged by 14% year over year to $320,714 for the 4-week period ending December 20. Key highlights include a 34% year-over-year increase in pending home sales and a 12% rise in new listings. However, active listings fell by 31%, reaching an all-time low. The Redfin Homebuyer Demand Index rose 23% from pre-pandemic levels. Mortgage rates decreased to 2.66%, the lowest ever recorded. The report suggests a competitive market for homebuyers in 2021.

Positive

• Median home sale price rose 14% year-over-year to $320,714.
• Pending home sales increased 34% year-over-year.
• New listings up by 12% compared to last year.
• 39% of homes accepted offers within the first two weeks on the market.

Negative

• Active listings fell 31% from 2019, reaching an all-time low.
• Mortgage purchase applications decreased 5% week-over-week.

SEATTLE, Dec. 29, 2020 /PRNewswire/ -- (NASDAQ: RDFN) — The median home sale price increased 14% year over year to $320,714 during the 4-week period ending December 20, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Below are other key housing market takeaways for 400+ U.S. metro areas during the 4-week period ending December 20.

• Pending home sales were up 34% year over year. In the single week ending December 20, pending sales were up 30% from the same week a year earlier.
• New listings of homes for sale were up 12% from a year earlier.
• Active listings (the number of homes listed for sale at any point during the period) fell 31% from 2019 to a new all-time low.
• 39% of homes that went under contract had an accepted offer within the first two weeks on the market, well above the 26% 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 99.4%—still 1.5 percentage points higher than a year earlier.
• For the week ending December 20, the seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other services from Redfin agents—was up 23% from pre-pandemic levels in January and February.
• Mortgage purchase applications decreased 5% week over week (seasonally adjusted) and were up 26% from a year earlier (unadjusted) during the week ending December 18. For the week ending December 24, 30-year mortgage rates fell to 2.66%, another new all-time low. Rates have been below 3% since late July.

"Going into the new year, it will truly be out with the old, because there will be very few homes from 2020 left on the market," said Redfin chief economist Daryl Fairweather. "So those who resolve to buy a home in 2021 may need to wait with bated breath for sellers to list their homes. Redfin's forecasts suggest the new year will bring many more new listings, but they will likely be snatched up quickly. So if you are a homebuyer, now is a good time to get pre-approved for a mortgage, and come up with your wishlist, so you can act quickly when your dream home hits the market."

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-december-20/

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 median home sale price reported by Redfin for December 2020?

The median home sale price is $320,714, reflecting a 14% increase year-over-year.

How much did pending home sales increase according to Redfin's December report?

Pending home sales rose by 34% year-over-year during the period.

What was the change in active listings reported by Redfin for December 2020?

Active listings decreased by 31% from 2019, reaching an all-time low.

What was the Redfin Homebuyer Demand Index trend during December 2020?

The Redfin Homebuyer Demand Index was up 23% from pre-pandemic levels.

What were the mortgage rates during the week ending December 24, 2020?

Mortgage rates fell to 2.66%, a new all-time low.