Redfin Corporation - RDFN STOCK NEWS

The median sale price for luxury homes in the U.S. rose 1.2% year-over-year to $825,000 for the three months ending July 31, according to a Redfin report. This follows a 1.7% decline during spring due to the pandemic. The non-luxury market saw a greater price increase of 6.3% to $275,250. Luxury home sales fell 6.2%, recovering from a 22.6% decline in the prior quarter. Notable price gains were recorded in Miami (+10.2%). The supply of luxury homes fell less than 1%, while non-luxury supply dropped 14%.

The real estate market is experiencing notable changes, as evidenced by the latest report from Redfin. For the four-week period ending August 9, home prices surged 10% year-over-year, reaching a record high of $314,000. Unlike typical seasonal patterns, prices rose 3.5% month-over-month, driven by high buyer demand. Homes are selling faster, with 46% finding buyers within two weeks. However, active inventory has decreased 28%, indicating a supply-demand imbalance. The Redfin Homebuyer Demand Index has increased 31% since pre-pandemic levels, highlighting a robust market despite challenges.

In July, only 6% of homes listed for sale hosted open houses within their first week, a significant drop from 16% in July 2019, despite a recovery from just 1% in April due to COVID-19 restrictions. The West experienced the slowest recovery at 4%, while the South was at 7%. Rising housing demand, driven by low mortgage rates and a shortage of homes, has led to increased competition, with over 50% of offers facing bidding wars. Virtual tours and 3D walkthroughs are becoming more popular as house hunters adapt to new norms.

The median sales price for homes in rural areas rose 11.3% year over year, while suburban and urban areas saw increases of 9.2% and 6.7% respectively. A survey indicated that 13% of homebuyers have shifted their focus from urban to rural areas due to the pandemic. Home sales in rural regions remained nearly flat at -0.9%, contrasting with declines of 4.7% and 8.9% in suburban and urban areas. Additionally, home supply fell 37.9% in rural areas, indicating a shift in buyer interest towards more spacious living environments.

The national median home price increased by 8.2% year over year to $323,800 in July 2020, marking an all-time high for the third time in four months, according to Redfin. Low mortgage rates drove demand amid a continued decrease in homes available for sale, which fell by 21.8% year on year. Home sales rebounded sharply, up 4.9% from a year earlier, with major price increases noted in various metro areas. However, the supply shortage remains critical, limiting home purchase opportunities.

Redfin reports that 46% of homes under contract during the four-week period ending August 2, 2020, sold within two weeks, marking the highest level since 2012. The median home price rose 9% year-over-year to $311,403, with a peak of $316,614 in the last week. The average sale-to-list price ratio remained at a record-high of 99%. Homes actively listed were on the market for an average of 49 days, the lowest on record. Supply continues to decline, with active inventory down 28% year-over-year, indicating a competitive market driven by low interest rates and high buyer demand.

In July 2020, 54% of Redfin offers faced bidding wars, a slight decrease from June's 56%. This trend persists despite economic challenges posed by the coronavirus pandemic, with record-low mortgage rates driving competition among homebuyers. Notably, the average 30-year mortgage rate fell below 3% for the first time. Salt Lake City, San Francisco, and San Diego lead in competition rates, while Las Vegas recorded the lowest at 32%. The housing market dynamics suggest potential shifts depending on future interest rates and remote work policies.

The median home sale price increased by 11% year-over-year to a record high of $315,000 for the week ending July 26, 2020, as reported by Redfin. This marks the largest price rise since early 2014. Demand from homebuyers is 27% higher compared to pre-pandemic levels, while active listings have decreased by 30%. Pending sales rose 12% year-over-year, though there are signs of a slight seasonal slowdown. The expiration of enhanced unemployment benefits could impact housing demand going forward.