Redfin Reports New Listings Gain Steam, Met by Hearty Demand

Rhea-AI Summary

The housing market shows signs of recovery, with newly listed homes down just 2% year-over-year, the smallest decline since mid-November. Pending sales increased by 1%, marking the first rise since mid-January. Median home sale prices reached a record high of $358,750, up 15% year-over-year. The median asking price also rose 15% to $385,327. Active listings fell 25% to an all-time low of 452,000 homes. Despite a 10% decrease in mortgage applications, homebuyer demand rose significantly, with 58% of homes under contract accepting offers within two weeks.

Positive

• New listings only declined 2% year-over-year, indicating potential stability.
• Pending sales rose 1%, the first increase since mid-January.
• Median home sale price reached a record high of $358,750, a 15% increase year-over-year.
• Median asking price increased 15% to $385,327, reflecting strong demand.
• Active listings fell 25% year-over-year to an all-time low of 452,000 homes.

Negative

• Mortgage purchase applications decreased 10% week over week, indicating potential buyer hesitation.

New listings post smallest year-over-year decline since mid-November; pending sales rise 1%

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) —The number of newly listed homes for sale during the four weeks ending February 20 was down just 2% year over year, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That's the smallest decline since mid-November.

More new listings were met with hearty demand. Pending sales rose 1%, the first increase since mid-January. The market again set new record highs for home sale prices, asking prices, buyers’ mortgage payments and the share of homes selling within days of hitting the market. We also saw a new all-time low for the total number of homes for sale.

”The good news for homebuyers is that each week more homes are being listed for sale,” said Redfin Deputy Chief Economist Taylor Marr. “There is growing evidence that January’s dramatic drop in new listings was only a temporary blip driven by heavy winter storms and the spike in Covid cases, so homebuyers may have some hope for better selection in the coming spring season.”

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

Unless otherwise noted, this data covers the four-week period ending February 20. Redfin’s housing market data goes back through 2012.

• The median home sale price was up 15% year over year to a record high of $358,750. This was up 32% from the same time in 2020.
• The median asking price of newly listed homes increased 15% year over year to an all-time high of $385,327. This was up 27% from the same time in 2020.
• The monthly mortgage payment on the median asking price rose to an all-time high of $2,014. This was up 24% from a year earlier when mortgage rates were 2.97%, and was up 34% from the same period in 2020 when rates were 3.45%.
• Pending home sales were up 0.8% year over year, the first increase since the four-week period ending January 16. Sales were up 32% from the same period in 2020, just prior to the start of the pandemic.
• Active listings (the number of homes listed for sale at any point during the period) fell 25% year over year, dropping to an all-time low of 452,000. Listings were down 49% from the same period in 2020.
• 58% of homes that went under contract had an accepted offer within the first two weeks on the market, an all-time high. This was up from the 51% rate of a year earlier and 43% in 2020.
• 45% of homes that went under contract had an accepted offer within one week of hitting the market, an all-time high. This was up from 39% during the same period a year earlier and 30% in 2020.
• Homes that sold were on the market for a median of 28 days, down from 37 days a year earlier and 58 days in 2020.
• 43% of homes sold above list price, up from 32% a year earlier and 20% in 2020.
• On average, 2.7% of homes for sale each week had a price drop, up 0.4 percentage points from the same time in 2021, but down 0.6 percentage points from 2020.
• The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, rose to 100.5%. In other words, the average home sold for 0.5% above its asking price.

Other leading indicators of homebuying activity:

• Mortgage purchase applications decreased 10% week over week (seasonally adjusted) during the week ending February 18. For the week ending February 24, 30-year mortgage rates fell slightly to 3.89%.
• Touring activity through February 20 was 17 percentage points ahead of 2021 and 2 points behind 2020 relative to the first week of January according to home tour technology company ShowingTime.
• The Redfin Homebuyer Demand Index rose 6% during the week ending February 20 and was up 15% from a year earlier.

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-demand-up-prices-record-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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220224005936/en/

Redfin Journalist Services:

Kenneth Applewhaite, 206-588-6863

press@redfin.com

Source: Redfin

FAQ

What is the latest trend in new home listings for RDFN as of February 20?

New listings for homes decreased by only 2% year-over-year, the smallest decline since mid-November.

How did pending home sales perform for RDFN during the recent reporting period?

Pending home sales rose by 1%, marking the first increase since mid-January.

What are the record highs in home sale prices reported by RDFN?

The median home sale price reached $358,750, up 15% year-over-year, while the median asking price hit $385,327.

What is the status of active home listings reported by RDFN?

Active listings fell 25% year-over-year, reaching an all-time low of 452,000 homes.

How did mortgage applications change recently for RDFN?

Mortgage purchase applications decreased by 10% week over week, indicating a possible slowing in buyer activity.