Redfin Reports Home Prices Surge 17% Amid Historic Housing Shortage

Rhea-AI Summary

The median home-sale price surged 17% year over year to reach an all-time high of $341,250, according to Redfin. Key housing market metrics from over 400 U.S. metro areas indicate that asking prices peaked at $353,750, with homes selling for a median of just 23 days on the market. Notably, 43% of homes sold exceeded their list price. However, new listings decreased by 13% compared to 2019, and active listings dropped 47%. The Redfin homebuyer demand index rose 4.3% from a month ago, highlighting strong buyer interest despite the limited inventory.

Positive

• Median home-sale price reached an all-time high of $341,250.
• Homes sold in a median of 23 days, the shortest time since 2012.
• 43% of homes sold for more than their list price, an all-time high.
• Average sale-to-list price ratio increased to 100.7%, meaning homes sold for 0.7% more than asking price.
• 59% of homes went under contract within two weeks, a new record.
• Homebuyer demand index increased by 4.3% from the previous month.

Negative

• New listings of homes for sale declined by 13% compared to 2019.
• Active listings fell 47% from the same period in 2019 to an all-time low.

SEATTLE, April 16, 2021 /PRNewswire/ -- (NASDAQ: RDFN) -- The median home-sale price increased 17% year over year to $341,250—an all-time high—according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Below are other key housing market takeaways for more than 400 U.S. metro areas during the 4-week period ending April 11.

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:

• Asking prices reached an all-time high of $353,750.
• Homes that sold during the period were on the market for a median of 23 days, the shortest time on market since 2012. This was 15 days fewer than the same period in 2020.
• 43% of homes sold for more than their list price, an all-time high. This was 17 percentage points higher than the same period a year earlier.
• The average sale-to-list price ratio—which measures how close homes are selling to their asking prices—increased 2.1 percentage points year over year to an all-time high of 100.7%, meaning the average home sold for 0.7% more than its asking price.
• 59% of homes that went under contract had an accepted offer within the first two weeks on the market. This is a new all-time high (Redfin's data for this measure goes back to 2012).
• 46% of homes that went under contract had an accepted offer within one week of hitting the market, an all-time high.

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 13% from the same period in 2019.
• Active listings (the number of homes listed for sale at any point during the period) fell 47% from the same period in 2019 to a new all-time low.

"The Easter holiday may have contributed to the latest decline in new listings, as many Americans were spending time with family instead of putting their homes on the market. The overall lack of homes for sale is limiting how much home sales can grow," said Redfin Lead Economist Taylor Marr. "However, Redfin's homebuyer demand index is up 4.3% from a month ago, revealing that house hunters are still out in full force. They're jumping on low mortgage rates, which are sliding back down toward 3%, and bidding up prices of the homes that do hit the market. The good news for buyers is that they should start to see more homes listed now that Easter is behind us."

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-home-prices-soar-17-percent/

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 caused the surge in home prices to an all-time high in April 2021?

The median home-sale prices increased by 17% year over year, attributed to low inventory and high buyer demand.

What is the current median home-sale price reported by Redfin?

As of April 2021, the median home-sale price is $341,250.

How fast are homes selling compared to previous years?

Homes sold during this period had a median market time of 23 days, which is the shortest since 2012.

What percentage of homes sold above their asking price in April 2021?

In April 2021, 43% of homes sold for more than their list price, marking an all-time high.

How do the current inventory levels compare to previous years?

Active listings dropped 47% compared to April 2019, reaching an all-time low.