Over Half of Homes Sold Above List Price in May for the First Time On Record

Rhea-AI Summary

In May 2021, the national median home-sale price reached a record high of $377,200, marking a 26% year-over-year increase. Redfin reports an uptick in home-selling speeds, with homes selling in just 16 days on average. 54% of homes sold above their list price, a record high. However, there are signs of a market slowdown, with flattened sales and new listings since April. Notably, the number of homes for sale dropped 27% from 2020, leading to increased competition among buyers.

Positive

• Record high national median home-sale price of $377,200 reflects strong demand.
• 54% of homes sold above list price indicates robust buyer competition.
• Average sale-to-list ratio reached a record of 102.2%, suggesting homes are selling for more than asking prices.

Negative

• The number of homes for sale fell to a record low, down 27% year-over-year, limiting availability for buyers.
• Seasonally adjusted home sales decreased by 0.7% from April, indicating a potential market slowdown.
• New listings fell from a year ago in 18 of the 85 largest metro areas, suggesting reduced supply.

SEATTLE, June 17, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — The national median home-sale price hit a record high of $377,200 in May, up a record 26% year over year, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. The housing market also set new records for home-selling speeds and competition, but seasonally adjusted home sales and new listings flattened from April. Leading indicators of housing market activity are also declining into June, according to the latest weekly data, signalling that the pace of the market may be slowing.

The following measures all hit new records in Redfin's data, which goes back through 2012:

• The number of homes for sale fell to a record low, down 27% from 2020.
• The typical home sold in just 16 days, a record low and down from 38 days in May 2020.
• 54% of homes sold above their list price, a record high, up from 26% a year ago.
• The average sale-to-list ratio, a measure of how close homes are selling to their asking prices, hit a record high of 102.2%. In other words, the average home sold for 2.2% above its asking price.

Pandemic-driven lockdowns significantly slowed homebuying and selling in May 2020, which means the year-over-year trends for home prices, pending sales, closed sales and new listings are exaggerated. For better context, Redfin's full report includes extra charts that zoom in on the last three years of home sales and new listings, without seasonal adjustments.

"May marked the likely peak of the blazing hot pandemic housing market, as many buyers and sellers are vaccinated and returning to pre-pandemic spending patterns," said Redfin Lead Economist Taylor Marr. "Sellers are still squarely in the drivers' seat, but buyers have hit a limit on their willingness to pay. The affordability boost from low mortgage rates has been offset by high home price growth."

National Market Summary	May 2021	Month-Over-Month	Year-Over-Year
Median sale price	$377,200	2.4%	26.3%
Homes sold, seasonally adjusted	615,800	-0.7%	52.2%
Pending sales, seasonally adjusted	569,400	3.4%	39.6%
New listings, seasonally adjusted	598,700	-0.4%	12.6%
All Homes for sale, seasonally adjusted	1,329,500	-6.0%	-26.9%
Median days on market	16	-3	-22
Months of supply	1.1	0	-1.9
Sold above list	53.6%	4.7 pts†	28.0 pts†
Median Off-Market Redfin Estimate	$345,300	1.4%	15.3%
Average Sale-to-list	102.2%	0.7 pts†	3.7 pts†
Average 30-year fixed mortgage rate	2.96%	-0.10 pts†	-0.27 pts†
† - "pts" = percentage-point change

Median sale prices increased from a year earlier in all of the 85 largest metro areas Redfin tracks. This is partly due to a shift in the mix of homes that are selling toward larger, higher-end properties. The smallest increase was in San Francisco, where prices were up 2.8% from a year ago. The largest price increases were in Austin, TX (+42%), Phoenix, AZ (+33%) and Detroit (+32%). To put Austin's price increases in context, consider that the sale price of a typical 3 bedroom, 2 bathroom suburban Austin home has increased from around $330,000 in May 2020 to $470,000 in May of 2021.

The number of homes sold in May was up 46% from a year earlier, but was down 0.7% from April. Compared to May 2020, home sales rose in all of the 85 largest metro areas Redfin tracks. The largest gains in sales were in places that had the most abrupt slowdown of home sales in May 2020, including San Francisco (+171%), San Jose (+167%) and Warren, MI (+154%).

Seasonally adjusted active listings—the count of all homes that were for sale at any time during the month—fell 27% year over year to their lowest level on record. Only seven of the 85 largest metros tracked by Redfin posted a year-over-year increase in the number of seasonally adjusted active listings of homes for sale. Philadelphia (+14%), New York (+13%) and San Francisco (+12%) experienced the biggest gains, all areas that saw a more abrupt decline in listings a year ago. The biggest year-over-year declines in active housing supply in May were in Baton Rouge, LA (-60%) and North Port, FL (-51%).

Seasonally adjusted new listings of homes for sale were up 12% in May from a year earlier, but down 14% from the same time in 2019, providing little hope for homebuyers anxious to see more homes to choose from. New listings fell from a year ago in 18 of the 85 largest metro areas. The biggest declines were in Baton Rouge (-47%) and St. Louis, MO (43%). New listings rose the most from a year ago in New York (+77%), Nassau County (+63%) and Philadelphia (+52%).

Although sales slowed slightly, the housing market was once again more competitive in May than any time since Redfin began tracking national housing data in 2012. The typical home that sold in May went under contract in 16 days—less than half as much time as a year earlier, when homes sold in a median 38 days.

The average sale-to-list price ratio continued to surge in May, hitting a record high of 102.2%. This measure typically peaks in June, so the market is likely to post an additional record high this month.

To read the full report, including charts and additional metro-level data breakouts, please visit: https://www.redfin.com/news/over-half-of-homes-sold-above-list-price-in-may-for-the-first-time-on-record/

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 more than $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 national median home-sale price in May 2021 for RDFN?

The national median home-sale price in May 2021 reached a record high of $377,200.

How much did the median home-sale price increase year-over-year for RDFN?

The median home-sale price increased by 26% year-over-year.

What percentage of homes sold above their list price in May 2021 for RDFN?

In May 2021, 54% of homes sold above their list price.

How quickly did homes sell in May 2021 according to RDFN?

Homes sold in an average of 16 days in May 2021.

What was the trend in home sales for RDFN in May 2021?

Home sales showed a slight decline of 0.7% from April, indicating a potential slowdown.