Home Sales Continue to Skyrocket as Homebuyers Scramble to Take Advantage of Historically Low Mortgage Rates

Rhea-AI Summary

Redfin (NASDAQ: RDFN) reports a 22% increase in median home-sale prices year-over-year, reaching an all-time high of $350,750. Homes sold at record speed, averaging just 18 days on the market. Key metrics include 49% of homes selling above list price and an average sale-to-list price ratio of 101.5%. Comparisons to 2019 show 25% growth in pending home sales but 48% fewer active listings. Mortgage applications increased by 1% week-over-week, with rates slightly dropping to 2.94%.

Positive

• Median home-sale price rose by 22% to $350,750.
• Homes sold in a record average of 18 days.
• 49% of homes sold for more than asking price, a 21 percentage point increase.
• Average sale-to-list price ratio reached 101.5%, indicating homes sold for 1.5% more than listed.

Negative

• Active listings fell by 48% compared to the same period in 2019.
• New home listings decreased by 9% compared to 2019.

SEATTLE, May 14, 2021 /PRNewswire/ -- (NASDAQ: RDFN) —The median home-sale price increased 22% year over year to $350,750—an all-time high—according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. In addition, the typical home sold in a record of just 18 days on the market.

Below are other key housing market takeaways for more than 400 U.S. metro areas during the 4-week period ending May 9 (unless otherwise noted).

Note that at this time last year, pandemic stay-at-home orders halted homebuying and selling, which makes year-over-year comparisons unreliable for select housing metrics. As such, Redfin has broken this analysis into two sections: metrics that are acceptable to compare to the same period in 2020, and metrics for which it makes more sense to compare to the same period in 2019.

Metrics to compare to 2020:

• Home prices hit a record high of $350,750 and were up 22% year-over-year, also a record. Asking prices dipped slightly to $358,527.
• A record low of just 18 days on market for homes that sold during the period, down 17 days from the same period in 2020.
• A record high of 49% of homes sold for more than their list price, up 21 percentage points from the same period a year earlier.
• A record-high 101.5% average sale-to-list price ratio, which measures how close homes are selling to their asking prices, up 2.9 percentage points year over year. This means that the average home sold for 1.5% more than its asking price.
• A record-high 58% of homes that went under contract had an accepted offer within the first two weeks on the market.
• A record-high 45% of homes that went under contract had an accepted offer within one week of hitting the market.

Metrics to compare to 2019:

• Pending home sales were up 25% from the same period in 2019.
• New listings of homes for sale were down 9% from the same period in 2019. Compared to the four-week period ending April 11, new listings were up 4%, slightly larger than the 2% increase during the same period in 2019. Although new listings are still in short supply, they are following a typical seasonal pattern and showing slightly more growth than in 2019.
• Active listings (the number of homes listed for sale at any point during the period) fell 48% from the same period in 2019.

Mortgage purchase applications increased 1% week over week (seasonally adjusted). For the week ending May 13, 30-year mortgage rates decreased slightly to 2.94%.

"The housing market has gone from one extreme—the onset of the pandemic—to another—the rush to buy primary and second homes while mortgage rates remain near historic lows," said Redfin Chief Economist Daryl Fairweather. "Later this year the dust will settle to reveal the new normal for both the economy and the housing market. Many people are getting new clarity on what their personal new normal will be like, and oftentimes that new reality will involve a new home to match their new lifestyle. So I expect home sales to continue to grow for the foreseeable future, even as home price growth slows a bit. This home sale boom is nowhere close to over."

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-home-prices-up-22-pct/

About Redfin 
Redfin (www.redfin.com) is a technology-powered real estate broker, instant home-buyer (iBuyer), lender, title insurer, and renovations company. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Since launching in 2006, we've saved customers nearly $1 billion in commissions. We serve more than 95 markets across the U.S. and Canada and employ over 4,100 people.

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 on May 14, 2021?

Redfin reported a median home-sale price of $350,750, a 22% increase year-over-year.

How long did homes take to sell on average according to Redfin's May 2021 report?

Homes sold in an average of 18 days, a record low.

What percentage of homes sold for more than their list price in May 2021?

49% of homes sold for more than their list price, up 21 percentage points from the previous year.

How many pending home sales were reported by Redfin compared to 2019?

Pending home sales were up 25% compared to the same period in 2019.

What mortgage rate did Redfin report for the week ending May 13, 2021?

The 30-year mortgage rates decreased slightly to 2.94%.