Home Prices Up 15%, Pending Sales Rise 32%

Rhea-AI Summary

The latest report from Redfin reveals a 15% increase in the median home sale price year over year, reaching $322,616, the highest recorded. Key findings include a 32% rise in pending home sales, a 13% increase in new listings, but a significant 30% drop in active listings compared to 2019. The average sale-to-list price ratio hit an all-time high of 99.5%. As of December 2020, mortgage rates fell to 2.67%. Redfin's chief economist expects continued strong demand in the housing market into 2021, amid the pandemic's final stages.

Positive

• Median home sale price up 15% to $322,616, highest ever.
• Pending home sales increased by 32% year over year.
• New listings of homes rose by 13% from a year earlier.
• The average sale-to-list price ratio reached an all-time high of 99.5%.
• Mortgage rates fell to 2.67%, a new record low.

Negative

• Active listings fell 30% compared to 2019, indicating potential supply issues.

SEATTLE, Dec. 18, 2020 /PRNewswire/ -- (NASDAQ: RDFN) — The median home sale price increased 15% year over year to $322,616, the highest on record, 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 13.

• Pending home sales were up 32% year over year. In the single week ending December 13, pending sales were up 28% from the same week a year earlier.
• New listings of homes for sale were up 13% from a year earlier.
• Active listings (the number of homes listed for sale at any point during the period) fell 30% 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. This measure has experienced some slight seasonal cooling, but is still well above the 26% it was at this same time a year ago.
• The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, rose to 99.5%—an all-time high and 1.5 percentage points higher than a year earlier.
• For the week ending December 13, the seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other services from Redfin agents—was up 32% from pre-pandemic levels in January and February. The fact that the Demand Index has held relatively steady since July indicates that there is no shortage of people interested in buying homes. Instead, a decline in the number of listings may be restricting actual sales.
• Mortgage purchase applications increased 2% week over week (seasonally adjusted) and were up 26% from a year earlier (unadjusted) during the week ending December 11. For the week ending December 17, 30-year mortgage rates fell to 2.67%, another new all-time low. Rates have been below 3% since late July.

"At a time of year when the housing market usually goes into hibernation, homebuyers are doing anything but hibernate," said Redfin chief economist Daryl Fairweather. "With the coronavirus vaccine set to roll out just as the housing market typically kicks into full gear, a combination of seasonality and the pandemic's final chapter is likely to keep the housing market hot well into 2021."

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/pending-sales-up-32-pct-prices-up-15-pct/

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 was the median home sale price reported by Redfin for December 2020?

The median home sale price was $322,616, a 15% increase year over year.

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

Pending home sales increased by 32% year over year.

What is the trend in active listings reported by Redfin?

Active listings fell by 30% compared to 2019.

What was the average sale-to-list price ratio for homes in December 2020?

The average sale-to-list price ratio reached an all-time high of 99.5%.

What mortgage rate was recorded in December 2020 according to Redfin?

The 30-year mortgage rate fell to 2.67%, marking a new all-time low.