Redfin Reports Half of Homes Are Now Selling Above List Price

Rhea-AI Summary

According to a recent report from Redfin (RDFN), 50% of homes sold for more than their list price during the four-week period ending May 16, marking a 23 percentage point increase year-over-year. Home prices reached a record high of $352,975, up 24% from the previous year. Key metrics also indicated a significant drop in days on the market, with homes selling in an average of just 17 days. However, pending home sales decreased by 10% from four weeks prior, suggesting a potential peak in homebuying demand as consumers shift spending towards other areas.

Positive

• 50% of homes sold above list price, up 23 percentage points YoY.
• Record high home prices at $352,975, a 24% increase YoY.
• Average sale-to-list price ratio reached 101.7%, indicating strong demand.
• Homes sold in an average of 17 days, down 18 days from last year.

Negative

• Pending home sales down 10% from four weeks prior, indicating declining demand.
• Mortgage purchase applications decreased 4% week-over-week.

SEATTLE, May 21, 2021 /PRNewswire/ -- (NASDAQ: RDFN) -- A record high of 50% of homes sold for more than their list price during the four weeks ending May 16, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. This marks an increase of 23 percentage points from the same period a year earlier.

Below are other key housing market takeaways for more than 400 U.S. metro areas during the 4-week period ending May 16.

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 analysis into two sections: metrics that are acceptable 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:

All but one of the metrics highlighted in the following list set a new housing record going back at least as far as 2012, when Redfin's data began.

• Home prices hit a record high of $352,975 and were up 24% year over year, also a record. Asking prices increased to $358,975, also a record high.
• A record-high 101.7% average sale-to-list price ratio, which measures how close homes are selling to their asking prices, up 3.2 percentage points year over year. This means that the average home sold for 1.7% more than its asking price.
• A record low of just 17 days on market for homes that sold during the period, down 18 days from the same period in 2020.
• A record-high 58% of homes that went under contract had an accepted offer within the first two weeks on the market.
• 45% of homes that went under contract had an accepted offer within one week of hitting the market, down just slightly from the record high in the four-week period ending May 9.

Metrics to compare to 2019:

• Pending home sales were up 22% from the same period in 2019.
• New listings of homes for sale were down 12% from the same period in 2019. Compared to the four-week period ending April 18, new listings were up 3%, compared to a 7% increase during the same period in 2019.
• Active listings (the number of homes listed for sale at any point during the period) fell 49% from the same period in 2019.

Pending sales for the seven-day period ending May 16 were down 10% from four weeks prior, compared to an 8% increase during the same period in 2019, suggesting that homebuying demand may have peaked for 2021.

Mortgage purchase applications decreased 4% week over week (seasonally adjusted). For the week ending May 20, 30-year mortgage rates increased slightly to 3.00%.

"We are seeing some early signs that the market has reached its maximum temperature," said Redfin Chief Economist Daryl Fairweather. "Mortgage purchase applications and pending sales have decreased, which may be a sign that some buyers would rather spend their money on restaurants, vacations, and other things they have held back on for the past year, instead of on housing now that the threat of the pandemic is dissipating in America. But make no mistake, the housing market is still very hot and will remain hot for the rest of the year."

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-half-of-homes-sell-above-list-price/

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 percentage of homes are selling above list price according to Redfin?

50% of homes sold for more than their list price during the four weeks ending May 16, 2021.

What is the record high for home prices reported by Redfin?

Home prices hit a record high of $352,975, which is a 24% increase year-over-year.

How long are homes averaging on the market?

The average time on the market for homes sold was just 17 days.

How did pending home sales change compared to four weeks prior?

Pending home sales decreased by 10% from the four weeks prior.

What is the average sale-to-list price ratio reported by Redfin?

The average sale-to-list price ratio reached a record high of 101.7%.