New Listings Fall 17%, Home Prices Rise 15%

Rhea-AI Summary

The median home sale price rose 15% year-over-year to $321,250, according to Redfin's latest report. Key findings include:

• Asking prices for newly listed homes reached an all-time high of $343,961, up 11% from last year.
• Pending home sales increased by 18% year-over-year, though they fell 9% from two weeks prior.
• Active listings dropped by 40% year-over-year, marking an all-time low.
• Homebuyer demand increased by 35% compared to last year.

For more details, visit Redfin's report.

Positive

• Median home sale price increased 15% to $321,250.
• Asking prices for newly listed homes reached an all-time high of $343,961, up 11% year-over-year.
• Pending home sales rose 18% year-over-year.
• Average sale-to-list price ratio increased to 99.4%, an all-time high.

Negative

• New listings of homes fell by 17% from a year earlier.
• Active listings decreased by 40% from 2020, reaching an all-time low.
• Mortgage purchase applications dropped by 12% week-over-week.

SEATTLE, Feb. 26, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — The median home sale price increased 15% year over year to $321,250, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Below are other key housing market takeaways for more than 400 U.S. metro areas during the 4-week period ending February 21.

• Asking prices of newly listed homes hit a new all-time high of $343,961, up 11% from the same time a year ago.
• Pending home sales were up 18% year over year. During the single week ending February 21, pending sales were down 9% from two weeks prior. Over the same period in 2020, pending sales were up 7%. It's likely that last week's massive winter storm impacted housing market activity in many parts of the country.
• New listings of homes for sale were down 17% from a year earlier.
• Active listings (the number of homes listed for sale at any point during the period) fell 40% from 2020 to a new all-time low.
• 55% of homes that went under contract had an accepted offer within the first two weeks on the market, well above the 44% rate during the same period a year ago. This is another new all-time high for this measure since at least 2012 (as far back as Redfin's data for this measure goes). During the week ending February 21, 57% of homes sold in two weeks or less.
• 43% of homes that went under contract had an accepted offer within one week of hitting the market, up from 30% during the same period a year earlier. This is also an all-time high for this measure. During the week ending February 21, 44% sold in one week or less.
• The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, increased slightly to 99.4%—1.6 percentage points higher than a year earlier and an all-time high. During the week ending February 21, the ratio shot up to 99.8%, also an all-time high.
• For the week ending February 21, the seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other services from Redfin agents—was up 35% from the same period a year ago.
• Mortgage purchase applications decreased 12% week over week (seasonally adjusted) and were up 7% from a year earlier (unadjusted) during the week ending February 19. For the week ending February 25, 30-year mortgage rates increased to 2.97%, the highest level since August.

"The housing market is now like a Soviet-era supermarket, with most of the shelves empty," said Redfin CEO Glenn Kelman in remarks on Redfin's Q4 earnings call this week. "In the week leading up to this call, demand slackened for the first time in months, probably because of cross-country snowstorms. But prior to that, the stories we heard from our agents were harrowing, juicy and bizarre. Migrations are warping the space-time continuum of small-town economies. The affordability crisis that flowed like some huge, unspent electrical charge from San Francisco to Seattle to Portland to Denver and to Boise is now reaching virtually every town in North America, bringing dazzling prosperity but also new anxieties."

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

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 nationwide brokerage website, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 95 markets in the United States and Canada. Since our launch in 2006, we have saved our customers nearly $1 billion and we've helped them buy or sell more than 310,000 homes worth more than $152 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 is $321,250.

By how much did asking prices of newly listed homes increase according to Redfin?

Asking prices of newly listed homes increased by 11% to an all-time high of $343,961.

How did pending home sales perform year-over-year as per Redfin's report?

Pending home sales were up 18% year-over-year.

What was the trend in active listings of homes for sale?

Active listings fell by 40% from 2020, marking an all-time low.

How much did the Redfin Homebuyer Demand Index increase compared to last year?

The Redfin Homebuyer Demand Index was up 35% from the same period last year.