Redfin Reports Higher Mortgage Rates Boost Buyer Urgency
Redfin's latest report reveals unseasonably high home prices and increased sales activity as of October 31. The national median sale price rose by 13% year-over-year, reaching $357,007, and 1.5% since October 10. Sales under one week surged to 33% and homes sold for 45% above listing prices. However, new listings fell by 7% compared to last year. Mortgage rates have slightly decreased to 3.09%, yet have risen overall since August, indicating a strong buyer urgency amid a constrained housing market.
- National median sale price increased 13% year-over-year to $357,007.
- Share of homes sold in one week rose to 33%, indicating faster sales.
- 45% of homes sold above list price, an increase from 35% a year earlier.
- Pending home sales up 5% year-over-year.
- New listings of homes decreased by 7% from the previous year.
- Active listings fell 22% compared to 2020 and 40% from 2019.
SEATTLE, Nov. 5, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — Home prices ticked up unseasonably and fast sales became more common in October, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The national median sale price during the four-week period ending October 31 was up
Mortgage rates were down slightly in the latest week, but have risen 30 basis points since August and the share of homes sold in one week rose to
"Rising mortgage rates have lit a fire under many homebuyers," said Redfin Chief Economist Daryl Fairweather. "Fear of missing out (FOMO) is always a powerful force in this supply-constrained housing market, but especially so today for buyers who weren't able to snag a home last year before mortgage payments shot up by
Key housing market takeaways for 400+ U.S. metro areas:
Unless otherwise noted, this data covers the four-week period ending October 31. Redfin's housing market data goes back through 2012.
- The median home-sale price increased
13% year over year to$357,007 . This was up30% from the same period in 2019 and up1.5% since the four-week period ending October 10. Over the same period in 2019 prices were essentially flat (+0.1% ), and in 2020 home prices rose0.4% . - Asking prices of newly listed homes were up
12% from the same time a year ago and up27% from 2019 to a median of$357,381 . - Pending home sales were up
5% year over year, and up51% compared to the same period in 2019. - New listings of homes for sale were down
7% from a year earlier, but up8% from 2019. - Active listings (the number of homes listed for sale at any point during the period) fell
22% from 2020, and were down40% from 2019. 45% of homes that went under contract had an accepted offer within the first two weeks on the market, above the41% rate of a year earlier and the30% rate in 2019. Since the four-week period ending September 19, the share of homes under contract within two weeks is up 1.6 percentage points. During the same time in 2019, the share fell 1.2 points.33% of homes that went under contract had an accepted offer within one week of hitting the market, up from29% during the same period a year earlier and19% in 2019. Since the four-week period ending September 12, the share of homes under contract within a week is up 2.6 percentage points. During the same time in 2019, the share fell 1.2 points.- Homes that sold were on the market for a median of 23 days, a full week longer than the all-time low of 16 days seen in late June and July, down from 31 days a year earlier and 45 days in 2019.
45% of homes sold above list price, up from35% a year earlier and22% in 2019.- On average,
4.7% of homes for sale each week had a price drop, up 1.1 percentage points from the same time in 2020, up 0.1 points from 2019. - The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, was flat at
100.6% . In other words, the average home sold for0.6% above its asking price.
Other leading indicators of homebuying activity:
- Mortgage purchase applications decreased
2% week over week (seasonally adjusted) during the week ending October 29. For the week ending November 4, 30-year mortgage rates fell to3.09% . - From January 1 to October 31, home tours were up
0.2% , compared to a9% increase over the same period last year, but higher than the -2% change in 2019, according to home tour technology company ShowingTime. - The Redfin Homebuyer Demand Index fell 2.2 points during the week ending October 31, and was up
14% from a year earlier.
To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-higher-rates-boost-buyer-urgency/
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
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
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