Redfin Reports Asking Prices Up 12% to All-Time High

Rhea-AI Summary

SEATTLE, Sept. 29, 2021 /PRNewswire/ -- Redfin (NASDAQ: RDFN) reports a significant increase in asking prices of homes, reaching a new high of 12% year-over-year. The median home-sale price rose 13% to $356,358. Despite this rise, pending sales saw only a 4% increase, the smallest since June 2020, indicating a potential cooling in the market. New listings are down 20% from the peak in 2021. Redfin's Chief Economist warns of possible market impacts from rising mortgage rates, emphasizing caution for sellers regarding pricing strategies.

Positive

• Asking prices of newly listed homes increased 12% year-over-year to a median of $361,250.
• The median home-sale price rose 13% year over year to $356,358.
• 46% of homes under contract had accepted offers within two weeks, an improvement from the previous year.

Negative

• Pending sales increased just 4%, the smallest gain since June 2020.
• New listings of homes for sale declined by 20% from the 2021 peak.
• Mortgage purchase applications decreased by 1% week over week, indicating a potential slowdown in demand.

SEATTLE, Sept. 29, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — Asking prices of homes listed for sale increased to an all-time high of 12%, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Pending sales were up just 4%, the smallest year-over-year increase since June 2020. Other housing market measures continued to show a typical seasonal cooling, with fewer than half of homes selling above list price and new listings of homes for sale down 20% from their 2021 peak.

"Home sellers continue to show their optimism with increasing asking prices," said Redfin Chief Economist Daryl Fairweather. "However, there are already signals from the Fed and markets that mortgage rates are starting to creep up. The hit to affordability that comes with higher rates and higher home prices could let some steam out of the market It's never a good idea to overprice your home, but I would be especially wary of overpricing as seasonal cooling trends persist and rising rates take some affordability out of the homebuying equation."

Key housing market takeaways for 400+ U.S. metro areas:
Unless otherwise noted, this data covers the four-week period ending September 26. Redfin's housing market data goes back through 2012.

• The median home-sale price increased 13% year over year to $356,358. This was up 0.2% from the four-week period ending September 19.
• Asking prices of newly listed homes were up 12% from the same time a year ago to a median of $361,250, an all-time high. Asking prices have been on the rise throughout the month of September, in a typical late-summer seasonal uptick.
• New listings of homes for sale were down 8% from a year earlier. New listings have been below 2020 levels since the four-week period ending August 22.
• Active listings (the number of homes listed for sale at any point during the period) fell 22% from 2020.
• 46% of homes that went under contract had an accepted offer within the first two weeks on the market, above the 43% rate of a year earlier.
• 33% of homes that went under contract had an accepted offer within one week of hitting the market, up from 31% during the same period a year earlier.
• Homes that sold were on the market for a median of 20 days, nearly a week longer than the all-time low of 15 days seen in late June and July, and down from 32 days a year earlier.
• 48% of homes sold above list price, up from 34% a year earlier.
• On average, 5% of homes for sale each week had a price drop, up 1.4 percentage points from the same time in 2020, and the highest level since the four-week period ending October 13, 2019.
• The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, decreased to 101%. In other words, the average home sold for 1% above its asking price.

Other leading indicators of homebuying activity:

• Mortgage purchase applications decreased 1% week over week (seasonally adjusted) during the week ending September 24. For the week ending September 23, 30-year mortgage rates were up slightly at 2.88%.
• From January 1 to September 26, home tours were up 7%, compared to a 29% increase over the same period last year, according to home tour technology company ShowingTime.
• The Redfin Homebuyer Demand Index fell during the week ending September 26, but was up 8% from a year earlier. The seasonally adjusted Redfin Homebuyer Demand Index is a measure of requests for home tours and other home-buying services from Redfin agents.

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-asking-prices-hit-new-high/

About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. 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. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 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 did Redfin report about asking prices on September 29, 2021?

Redfin reported that asking prices of homes increased to an all-time high of 12% year-over-year.

What was the median home-sale price reported by Redfin in September 2021?

The median home-sale price rose to $356,358, an increase of 13% year-over-year.

How did pending sales change according to Redfin's report?

Pending sales only increased by 4%, the smallest year-over-year rise since June 2020.

What concerns did Redfin's Chief Economist express regarding the housing market?

The Chief Economist highlighted that rising mortgage rates may affect market affordability and cautioned sellers against overpricing.