Homebuying Picks Up After Election Week, Pending Sales Up 29% From 2019

Rhea-AI Summary

The latest report from Redfin highlights significant growth in the housing market, with a 15% increase in median home sale prices year-over-year, reaching a record $322,148. Key metrics include a 29% rise in pending home sales and a 4% increase in mortgage applications from the previous week. Active listings hit an all-time low, dropping 29% from 2019, while the average sale-to-list price ratio rose to 99.5%. The Redfin Homebuyer Demand Index saw a 35% increase from pre-pandemic levels.

Positive

• Median home sale prices surged 15% year-over-year to $322,148, the highest on record.
• Pending home sales increased 29% year-over-year, indicating strong buyer demand.
• Mortgage purchase applications rose 4% week-over-week, reflecting improved market activity.
• The average sale-to-list price ratio achieved an all-time high of 99.5%.

Negative

• Active listings fell 29% from 2019, indicating tightened inventory in the market.
• New listings were the lowest since May, limiting options for buyers.

SEATTLE, Nov. 20, 2020 /PRNewswire/ -- (NASDAQ: RDFN) — The median home sale price increased 15% year over year to $322,148, the highest on record, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Home prices rose 16% year over year in the single week ending November 15.

Below are other key housing market takeaways for 400+ U.S. metro areas during the 4-week period ending November 15.

• Pending home sales climbed 29% year over year even as the number of pending sales continued a typical seasonal decline. In the single week ending November 15, pending sales were up 22% from the same week a year earlier. This is a slight increase compared to the previous week's growth.
• New listings of homes for sale were up 7% from a year earlier. The one-week year-over-year increase also rebounded to 6% for the week ending November 15 from 3% during election week The number of new listings was the lowest it has been since May.
• Active listings (the number of homes listed for sale at any point during the period) fell 29% from 2019 to a new all-time low.
• 43% of homes that went under contract had an accepted offer within the first two weeks on the market. This measure typically peaks in April or May and declines through the end of the year, but this year it held relatively between late June and October, and has only recently begun to decline slightly.
• 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 November 15, the seasonally adjusted Redfin Homebuyer Demand Index was up 35% from pre-pandemic levels in January and February.
• Mortgage purchase applications increased 4% week over week (seasonally-adjusted) and were up 26% from a year earlier (unadjusted) during the week ending November 13. For the week ending November 19, 30-year mortgage rates dropped to 2.72%, the thirteenth record low this year. Rates have been below 3% since late July.

"In early November, few homeowners decided to list amidst all of the uncertainty and anxiety about the election outcome," said Redfin chief economist Daryl Fairweather. "But that anxiety didn't stop buyers from scooping up the homes that were left for sale. However, our data is starting to show a slowdown in the number of people viewing homes, which is typical for this time of year. If that trend continues the way we'd expect it to, buyers who remain in the market may start to encounter less competition than we've grown accustomed to since the summer, before the market likely returns to full speed in the new year."  

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

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 reported by Redfin?

The current median home sale price reported by Redfin is $322,148.

How much did pending home sales increase in the latest report?

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

What percentage increase was observed in mortgage purchase applications?

Mortgage purchase applications increased by 4% week-over-week.

What is the average sale-to-list price ratio according to the report?

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

How do current active listings compare to 2019 levels?

Active listings have dropped 29% from 2019, reaching an all-time low.