Redfin Reports March Was the Hottest Month in Housing History

Rhea-AI Summary

The national median home-sale price reached a record $353,000 in March 2021, reflecting a 17% year-over-year increase. This growth occurred alongside a historically low inventory of homes, with listings down 29% year-over-year. Homes sold quickly, averaging 25 days on the market. Notably, 42% of homes sold above their list price, establishing record competition in the housing market. Despite some price decreases in areas like Honolulu and San Francisco, most metros saw price increases, particularly in Austin and Fresno.

Positive

• Median home-sale price hit a record high of $353,000, up 17% from last year.
• 42% of homes sold above their list price, marking a record high.
• The average sale-to-list ratio exceeded 100% for the first time.
• Typical home sold in just 25 days, showing a record low.
• Sales increased significantly in major metros like New York (+58%) and San Jose (+56%).

Negative

• New listings fell by 7%, contributing to the low inventory.
• The number of homes for sale dropped by 29% year-over-year, the largest drop on record.

SEATTLE, April 15, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — The national median home-sale price hit a record high of $353,000 in March, up 17% from 2020 and a record high rate of growth, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. The housing market set several other records in March, even considering the fact that year-over-year comparisons are now looking at the start of the pandemic:

• The number of homes for sale fell to a record low, with a record year-over-year drop of 29%.
• The typical home sold in just 25 days, a record low.
• 42% of homes sold above their list price, a record high.
• The average sale-to-list ratio, a measure of how close homes are selling to their asking prices, hit a record high, passing 100% for the first time.

Year-over-year comparisons may more reflect the fact that in March 2020, stay-at-home-orders halted both home-buying and selling activity. They don't necessarily reflect how the housing market has changed over the past year.

"My family is looking for a home to buy in the Washington, D.C. area, so I know first-hand that the house hunt feels a lot like spinning the roulette wheel each week," said Redfin Lead Economist Taylor Marr. "So why would we buy into the toughest market I've ever seen? Despite the intense competition and high prices we face, I still see more big gains to be made in home equity. Fundamentals like low mortgage rates and high demand for housing are fueling the record-high price gains, so I don't believe that homes are overvalued. Waiting for the market to cool could take many months, and at that point we may have missed out on the opportunity to benefit from these super-low mortgage rates and price gains in the year ahead."

Median sale prices increased from a year earlier in all but two of the 85 largest metro areas Redfin tracks. The only places prices didn't increase were Honolulu, where they fell 4.7% from a year ago and San Francisco, where they were down 1.6%. The largest price increases were in Austin, TX (+28%), Fresno, CA (+23%) and North Port, FL (+23%), three popular destinations for newly-remote workers who have been leaving the most expensive metro areas during the pandemic in search of more affordable locales.

Market Summary	March 2021	Month-Over-Month	Year-Over-Year
Median sale price	$353,000	5.3%	16.7%
Homes sold, seasonally-adjusted	597,300	-2.4%	10.1%
Pending sales, seasonally-adjusted	537,700	-5.5%	22.1%
New listings, seasonally-adjusted	527,100	-1.5%	-7.1%
All Homes for sale, seasonally-adjusted	1,458,600	-3%	-28.9%
Median days on market	25	-7	-19
Months of supply	1.1	-0.5	-1.5
Sold above list	42.0%	5.9 pts†	16.6 pts†
Median Off-Market Redfin Estimate	$337,500	0%	15.4%
Average Sale-to-list	100.6%	0.8 pts†	2.0 pts†
Average 30-year fixed mortgage rate	3.08%	0.27 pts†	-0.37 pts†
† - "pts" = percentage-point change

The number of homes sold in March was up from a year earlier in most of the 85 largest metro areas Redfin tracks, but 11 metros did see declines. The largest gains in sales were in New York (+58%), San Jose (+56%) and San Francisco (+55%). The metro areas where home sales fell the most were Rochester, NY (-9%), Grand Rapids, MI (-9%) and Dayton, OH (-7%). The number of homes for sale in all three of these metro areas has been falling by around 30% year over year for most of this year, so the drop in sales is likely due largely to a lack of supply.

Active listings—the count of all homes that were for sale at any time during the month—fell 29% year over year to their lowest level on record. This was the largest year-over-year drop on record and the 20th-straight month of declines.

Only four of the 85 largest metros tracked by Redfin posted a year-over-year increase in the count of seasonally-adjusted active listings of homes for sale: San Francisco (+34%), San Jose (+20%), Oakland, CA (+8%) and Los Angeles (+3%). The biggest year-over-year declines in active housing supply in March were in Salt Lake City (-66%), Baton Rouge, LA (-59%) and Allentown, PA (-52%).

New listings of homes for sale fell 7% in March from a year earlier. Despite the ongoing decline in new listings of homes for sale, pending sales were still up 22% from 2020.

The housing market was more competitive in March than any time since the start of Redfin's national housing data in 2012.

The typical home that sold in March went under contract in 25 days—19 days fewer than a year earlier and the fastest pace on record.

In March a record-high 42% of homes sold above list price, the largest share on record. If this measure follows the typical seasonal pattern, it may continue to hit new record highs in April, May and June.

The average sale-to-list price ratio exceeded 100% for the first time on record in March. This measure also typically peaks in June, so it may hit additional record highs for the next three months if the market does not cool down.

To read the full report, including graphs and additional metro-level data highlights, please visit: https://www.redfin.com/news/housing-market-hottest-month-ever-in-march/.

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 is the current median home-sale price reported by Redfin for March 2021?

The median home-sale price reported by Redfin for March 2021 is $353,000.

How much did the number of homes for sale decrease in March 2021 compared to last year?

The number of homes for sale decreased by 29% year-over-year in March 2021.

What percentage of homes sold above their list price in March 2021?

In March 2021, 42% of homes sold above their list price.

What was the typical time a home spent on the market in March 2021?

The typical home sold in March 2021 was on the market for 25 days.

Which areas saw the largest increases in home prices according to Redfin's report?

Austin, TX (+28%), Fresno, CA (+23%), and North Port, FL (+23%) saw the largest increases in home prices.