Redfin Reports Homebuyers Face Record Supply Shortage Heading into 2022

Rhea-AI Summary

Redfin has reported a robust start to 2022, with home prices increasing by 14% year-over-year, reaching a median of $358,460. Despite a 27% decline in active listings, pending sales rose by 3.5%. The number of new listings fell by 10%, yet there are signs that more homes may soon enter the market. Redfin Chief Economist Daryl Fairweather noted increased interest from homeowners in selling. Key metrics show 41% of homes sold exceeded their asking prices, with a notable 100.3% average sale-to-list price ratio.

Positive

• 14% year-over-year increase in median home-sale price to $358,460.
• Pending home sales rose 3.5% year-over-year.
• 41% of homes sold above list price, up from 33% a year earlier.
• Average sale-to-list price ratio at 100.3%, indicating homes sold for an average of 0.3% above asking.

Negative

• Active listings fell 27% year-over-year, reaching an all-time low of 482,000.
• New listings of homes for sale decreased by 10% compared to last year.

Home prices were up 14% and pending sales rose 4% from a year earlier despite a record low number of homes for sale

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — The housing market started off the new year with fewer homes for sale than ever before as active listings fell 27% from a year earlier, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

The number of newly-listed homes for sale fell 10%, but anecdotes from Redfin agents suggest that listings may soon begin to pick up.

“We’re kicking off yet another year with a whole lot of buyers whose home search has been ongoing for months, and they are as eager as ever,” said Redfin Chief Economist Daryl Fairweather. “This month, the stage will be set for the 2022 housing market, and we’ll be closely watching whether prices climb like they usually do in January or whether they start off high and stagnate. We’re also keeping a close eye on new listings. I’ve already been hearing from Redfin agents in extremely supply-constrained markets like Austin that they are getting more interest than usual from homeowners about selling early this year. A lot of these people spent the last couple months getting their homes spruced up and ready to list. This gives me hope that more sellers will be motivated to take action now that the new year has arrived.”

Key housing market takeaways for 400+ U.S. metro areas:

Unless otherwise noted, this data covers the four-week period ending January 2. Redfin’s housing market data goes back through 2012.

• The median home-sale price increased 14% year over year to $358,460, just shy of an all-time high.
• The median asking price of newly listed homes increased 12% year over year to $341,200.
• Pending home sales were up 3.5% year over year.
• New listings of homes for sale were down 10% from a year earlier.
• Active listings (the number of homes listed for sale at any point during the period) fell 27% year over year, dropping below $500,000 for the first time to an all-time low of $482,000.
• The share of homes that went under contract that had an accepted offer within the first two weeks on the market was 40%, above the 35% rate of a year earlier.
• 29% of homes that went under contract had an accepted offer within one week of hitting the market, up from 25% during the same period a year earlier.
• Homes that sold were on the market for a median of 27 days, down from 34 days a year earlier.
• 41% of homes sold above list price, up from 33% a year earlier.
• On average, 2.4% of homes for sale each week had a price drop, up 0.5 percentage points from the same time in 2021.
• The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, was 100.3%. In other words, the average home sold for 0.3% above its asking price.

Other leading indicators of homebuying activity:

• Mortgage purchase applications decreased 4% week over week (seasonally adjusted) during the week ending December 31. For the week ending December 30, 30-year mortgage rates inched up to 3.11%.
• The Redfin Homebuyer Demand Index rose 7% during the week ending January 2 and was up 18% from a year earlier.

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-inventory-falls-below-500000/

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/20220106005678/en/

Redfin Journalist Services:

Kenneth Applewhaite, 206-588-6863

press@redfin.com

Source: Redfin

FAQ

What are the key housing market trends reported by Redfin for January 2022?

Redfin reported a 14% increase in median home-sale prices and a 3.5% rise in pending sales, despite a 27% decline in active listings.

How did active home listings change compared to last year according to Redfin?

Active listings fell by 27% year-over-year, dropping below 500,000 for the first time.

What percentage of homes sold were above the list price in January 2022?

41% of homes sold were above the list price, an increase from 33% the previous year.

What was the median asking price of newly listed homes reported by Redfin?

The median asking price of newly listed homes increased by 12% year over year to $341,200.

What was the average sale-to-list price ratio in January 2022?

The average sale-to-list price ratio was 100.3%, meaning homes sold for 0.3% above their asking price.