Redfin Reports Homebuyer Demand and Sellers' Asking Prices Get a Late-Summer Boost

Rhea-AI Summary

Early homebuyer demand surged to a three-year high as of September 19, 2021, according to Redfin. Mortgage applications rose by 2%, following an 8% increase the previous week. The median home-sale price climbed to $356,663, a 13% annual increase, while newly listed home asking prices reached an all-time high of $359,724, up 11% year over year. However, pending sales decreased by 12% from their 2021 peak. Chief Economist Daryl Fairweather predicts a potential rise in home prices this fall as demand persists despite seasonal trends.

Positive

• Homebuyer demand hit a three-year high.
• Median home-sale price increased 13% year over year to $356,663.
• Asking prices for newly listed homes reached an all-time high of $359,724, up 11% from last year.
• Mortgage purchase applications rose by 2% week over week.

Negative

• Pending home sales down 12% from 2021 peak.
• Active listings fell 21% from 2020 levels.
• Time on market increased to 20 days, up from 15 days seen in late June.
• 4.9% of homes had a price drop, the highest level since late 2019.

SEATTLE, Sept. 22, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — Early homebuyer demand reached the highest point in at least three years during the week ending September 19, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Mortgage purchase applications also increased 2%, on top of an 8% increase the prior week.

During the four-week period ending September 19, most other housing market measures showed a typical late-summer seasonal decline with pending sales down 12% from their 2021 peak, the share of homes sold above list price falling below 50%, and time on market inching up to 20 days. Asking prices, which often increase in September, were up 2.4% from the four-week period ending September 5.

"The fact that homebuyer demand is setting new records as summer draws to a close leads me to believe that home prices have room to grow," said Redfin Chief Economist Daryl Fairweather. "This fall will be a litmus test for how hot the 2022 housing market will get. And it looks like we are heading into another unseasonably hot fall as ultra-low mortgage rates and employers' remote-work policies mean Americans are still on the move."

Key housing market takeaways for 400+ U.S. metro areas:
Unless otherwise noted, this data covers the four-week period ending September 19. Redfin's housing market data goes back through 2012.

• The median home-sale price increased 13% year over year to $356,663. This was essentially flat from the four-week period ending September 12.
• Asking prices of newly listed homes were up 11% from the same time a year ago to a median of $359,724, an all-time high.
• Pending home sales were up 6% year over year.
• New listings of homes for sale were down 6% 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 21% 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, up from the all-time low of 15 days seen in late June and July, and down from 32 days a year earlier.
• 49% of homes sold above list price, up from 34% a year earlier.
• On average, 4.9% of homes for sale each week had a price drop, up 0.8 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 101.2%. In other words, the average home sold for 1.2% above its asking price.

Other leading indicators of homebuying activity:

• Mortgage purchase applications increased 2% week over week (seasonally adjusted) during the week ending September 17. For the week ending September 16, 30-year mortgage rates were down slightly at 2.86%.
• From January 1 to September 19, home tours were up 11%, compared to a 33% increase over the same period last year, according to home tour technology company ShowingTime.
• The Redfin Homebuyer Demand Index hit a 3-year high during the week ending September 19, up 23% from a year earlier.

To view the full report, including charts and methodology, please visit:
https://www.redfin.com/news/housing-market-update-homebuying-demand-3yr-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 recent trend did Redfin report for homebuyer demand?

Redfin reported that early homebuyer demand has reached its highest point in three years as of September 19, 2021.

How much did mortgage purchase applications increase according to Redfin?

Mortgage purchase applications increased by 2% for the week ending September 17, 2021.

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

The median home-sale price is $356,663, reflecting a 13% increase year over year.

What are the asking prices of newly listed homes according to Redfin's report?

Asking prices for newly listed homes reached a median of $359,724, which is an all-time high, up 11% from last year.

What does Redfin's Chief Economist predict for the upcoming fall housing market?

Daryl Fairweather predicts that the fall will serve as a litmus test for potential increases in home prices as demand continues.