New Housing Market Records Set for Prices, Competition and Speed

Rhea-AI Summary

The housing market is experiencing a record-setting surge, with a 21% year-over-year increase in median home-sale prices, reaching $348,500. This growth is driven by an uptick in high-end home sales, with asking prices at an all-time high of $360,975.

Key metrics include a record low of 19 days on the market for sold homes and 48% of homes selling for above their list prices. Pending home sales increased by 23% from 2019, while new listings declined by 8%.

Positive

• 21% year-over-year growth in median home-sale price, now at $348,500.
• High-end homes driving sales; asking prices reach $360,975.
• Record low of 19 days on the market for homes sold.
• 48% of homes sold for above their list price, up 20 percentage points.
• Pending home sales up 23% compared to 2019.

Negative

• New listings of homes down 8% from 2019.
• Active listings fell 48% from the same period in 2019.
• Mortgage purchase applications decreased 3% week over week.

SEATTLE, May 7, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — A record high 21% year-over-year growth rate in the median home-sale price hit $348,500, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. One contributing factor to the large rate of growth is that more high-end homes are being sold now than a year ago. Asking prices reached an all-time high of $360,975.

Below are other key housing market takeaways for more than 400 U.S. metro areas during the 4-week period ending May 2 (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 report into two sections: metrics that are OK 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:

• A record low of just 19 days on market for homes that sold during the period, down 16 days from the same period in 2020.
• A record high of 48% of homes sold for more than their list price, up 20 percentage points from the same period a year earlier.
• A record high 101.4% average sale-to-list price ratio, which measures how close homes are selling to their asking prices, up 2.7 percentage points year over year. This means that the average home sold for 1.4% 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 23% from the same period in 2019.
• New listings of homes for sale were down 8% from the same period in 2019. Compared to the four-week period ending April 4, new listings were up 9%, slightly larger than the 7% 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 decreased 3% week over week (seasonally adjusted). For the week ending April 29, 30-year mortgage rates decreased slightly to 2.96%.

"Right now we are seeing a substantial increase in home prices, which could be a precursor to more widespread inflation throughout the economy," said Redfin Chief Economist Daryl Fairweather. "Lumber prices are surging, which has driven up prices of new homes and indirectly drives up prices of existing homes. As states lift their pandemic restrictions, we will likely see more shortages and price increases on everything from gasoline to hotel stays and food. These price increases will likely be short-lived, but could cut into homebuyers' budgets and ease competition enough for the housing market to become more balanced. A more balanced market could encourage more move-up homeowners to finally sell, because they won't be so fearful about being able to find and compete for a home to buy."

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-home-prices-up-21-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 is the latest median home-sale price reported by RDFN?

The latest median home-sale price reported by RDFN is $348,500, reflecting a 21% year-over-year growth.

How fast are homes selling according to the latest RDFN report?

According to the latest RDFN report, homes are selling at a record low of 19 days on the market.

What percentage of homes sold for above their list price in the recent RDFN report?

The recent RDFN report states that 48% of homes sold for more than their list price.

How do pending home sales compare to 2019 according to RDFN?

Pending home sales are up 23% compared to the same period in 2019 according to RDFN.

What does RDFN's report indicate about new listings?

RDFN's report indicates that new listings are down 8% from the same period in 2019.