Redfin Reports Home Sales Posted Largest Monthly Decline Since Pandemic Onset

Rhea-AI Summary

Seattle—(BUSINESS WIRE)—Redfin (NASDAQ: RDFN) reports that home sales fell 3.6% month-over-month and 11% year-over-year in December, marking the largest monthly decline since May 2020. The median sale price rose to $383,100, a 15.1% increase from the previous year. Active listings dropped significantly, with only Detroit reporting an increase. Despite high demand, a lack of supply is constraining sales, leading to expectations of rising prices in January. The average sale-to-list price ratio remained at 100.5%, reflecting competitive market conditions.

Positive

• Median sale price rose to $383,100, a 15.1% annual increase.
• 43% of homes sold above list price, indicating strong demand.

Negative

• Home sales declined 3.6% month-over-month and 11% year-over-year.
• Only one of 88 tracked metro areas reported an increase in active listings, indicating low supply.

Housing supply fell to a new low in December, fueling a 3.6% month-over-month drop in home sales

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN)—Fewer homes than ever were for sale in December, driving seasonally-adjusted home sales down 3.6%, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. This marks the largest month-over-month sales decline since May 2020. Home prices surged 15% from a year earlier, the 17th consecutive month of double-digit increases.

“Home sales are slumping, but not for lack of demand,” said Redfin Chief Economist Daryl Fairweather. “There are plenty of homebuyers on the hunt, but there is just nothing for sale. In many markets, shopping for a home feels like going to the grocery store only to find the shelves bare. In January, I expect to see more buyers and sellers in the market, but demand will increase more than supply -- pushing prices higher at the start of this year.”

Market Summary	December 2021	Month-Over-Month	Year-Over-Year
Median sale price	$383,100	0.9%	15.1%
Homes sold, seasonally-adjusted	616,500	0.8%	-5.8%
Pending sales, seasonally-adjusted	614,300	1.2%	0.8%
New listings, seasonally-adjusted	643,400	0.1%	-8.7%
All Homes for sale, seasonally-adjusted	1,360,200	-2.5%	-18%
Median days on market	22	1	-6
Months of supply	1.2	-0.2	-0.5
Sold above list	44.3%	-1.5 pts†	9.1 pts†
Median Off-Market Redfin Estimate	$NA	NA%	NA%
Average Sale-to-list	100.6%	-0.1 pts†	1.1 pts†
Average 30-year fixed mortgage rate	3.07%	0 pts†	+0.3 pts†

† - “pts” = percentage-point change

“The wild housing market did not take a break for the holidays,” said Brionna Chang, a Redfin real estate agent in the San Francisco area. “There was one two-bedroom home in Orinda that was listed just before Christmas and around 40 people immediately came to the open houses. It ended up getting multiple offers and going for $325,000 over the $1.2 million asking price.”

Median sale prices increased from a year earlier in all but one of the 88 largest metro areas Redfin tracks. The only metro area with a decrease was Bridgeport, CT, where home prices fell 0.4% from a year earlier following a 28% year-over-year increase in December 2020. The largest price increases were in Austin, TX (+30%), North Port, FL (+28%) and Phoenix, AZ (+28%).

Seasonally-adjusted home sales in December were down 3.6% from a month earlier and 11% from a year earlier, the largest annual decline since June 2020. Home sales fell from the prior year in 79 of the 88 largest metro areas Redfin tracks. The biggest sales declines were seen in Nassau County, NY (-22%), New Brunswick, NJ (-22%) and Albany, NY (-21%). The largest gains were in Greenville, SC (+9%), Greensboro, NC (+8%) and Baton Rouge, LA (+7%).

Only one of the 88 largest metros tracked by Redfin posted a year-over-year increase in the number of seasonally adjusted active listings of homes for sale: Detroit, MI (+4%). The biggest year-over-year declines in active housing supply in December were in Baton Rouge, LA (-52%), San Jose, CA (-49%) and San Francisco, CA (-46%).

Seasonally adjusted new listings of homes for sale were down 13% in December from a year earlier, the largest decline since May 2020. New listings fell from a year ago in 82 of the 88 largest metro areas.

The typical home that sold in December went under contract in 24 days—a week faster than a year earlier, when homes sold in a median 31 days, but up nine days from the record low of 15 days in June.

In December, 43% of homes sold above list price, down 14 percentage points from the record high in June, but up 9 percentage points from a year earlier. The average sale-to-list price ratio in December was 100.5%, down from a record high of 102.6% in June but up from 99.4% a year earlier.

To read the full report, including charts and additional metro-level highlights, please visit: https://www.redfin.com/news/home-sales-down-11-pct/

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220114005104/en/

Redfin Journalist Services:

Ally Braun, 661-312-1050

press@redfin.com

Source: Redfin

FAQ

What were the housing market trends in December 2021 for RDFN?

In December 2021, RDFN reported a 3.6% drop in home sales from the previous month and an 11% decline from the previous year.

How much did the median sale price increase for RDFN in December 2021?

The median sale price increased to $383,100, reflecting a 15.1% rise year-over-year.

What percentage of homes sold above the list price for RDFN in December 2021?

In December 2021, 43% of homes sold above their list price.

Which metro area reported an increase in active listings in December 2021?

Only Detroit reported an increase in active housing listings among the 88 metro areas tracked by RDFN.

How does the housing supply trend look for RDFN?

The housing supply fell significantly in December 2021, contributing to the decline in home sales.