Redfin Reports New Low for Home Supply in November

Rhea-AI Summary

The housing market faced significant challenges as Redfin reported a historic low in home inventory, with a 18% year-over-year decrease in available homes for sale in November. This decline drove the median sale price up by 15% to $383,100, marking the 16th consecutive month of price gains. Both closed home sales and new listings fell by 6% and 9% respectively, indicating ongoing market pressures. Despite low mortgage rates, buying conditions remain tough, with Chief Economist Daryl Fairweather cautioning buyers about potential inflation impacts.

Positive

• Median sale price rose 15% to $383,100.
• Continued price gains for 16 months.
• Low mortgage rates provide potential financial relief to buyers.

Negative

• Home inventory at an all-time low, down 18% year-over-year.
• Closed home sales decreased by 6%, signaling weaker market activity.
• New listings of homes fell 9%, indicating reduced supply.

SEATTLE, Dec. 20, 2021 /PRNewswire/ -- (NASDAQ: RDFN) -- The seasonally-adjusted number of homes for sale fell 18% year over year in November to an all-time low, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. This sent the median sale price up 15% to $383,100.

November marked the 16th consecutive month of double-digit price gains, and so far in December there are no signs of the typical seasonal slowdown in price growth that usually comes at the end of the year. Seasonally-adjusted closed home sales and new listings of homes for sale both fell from a year earlier, by 6% and 9% respectively, and the average home sold for 0.6% more than list price.

"I wish I had better news for homebuyers this holiday season, but in many ways the housing market is more challenging than ever," said Redfin Chief Economist Daryl Fairweather. "At least buyers have the benefit of low mortgage rates. But by next year, inflation may spread to more consumer goods. So even though our new year's forecast includes more listings and slower home-price growth, buyers may feel so pinched by other expenses that they have to reduce their housing budgets."

Market Summary	November 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%	-18.0%
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

Median sale prices increased from a year earlier in all of the 85 largest metro areas Redfin tracks. The smallest increases were in Baltimore, MD, Bridgeport, CT and Newark, NJ. The largest price increases were in Austin, TX (+31%), Phoenix, AZ (+27%) and North Port, FL (+27%).

Seasonally-adjusted home sales in November were down 6% from a year earlier, a slightly less severe decline than the previous month. Home sales fell in 49 of the 85 largest metro areas Redfin tracks. The biggest sales declines were seen in Nassau County, NY (-21%), Bridgeport, CT (-19%) and McAllen, TX (-17%). The largest gains were in places where sales were still somewhat depressed in November 2020, including Honolulu, HI (+31%), San Francisco, CA (+13%) and Tulsa, OK (11%).

Seasonally adjusted active listings—the count of all homes that were for sale at any time during the month—hit an all-time low in November, falling 18% year over year.

Only four of the 85 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 (+7%), Milwaukee, WI (+4%), Austin, TX (+3%) and Tacoma, WA (+2%). The biggest year-over-year declines in active housing supply in November were in Baton Rouge, LA (-51%), Salt Lake City, UT (-50%) and Sacramento, CA (-48%).

Seasonally adjusted new listings of homes for sale were down 9% in November from a year earlier, on par with the decline seen in October. New listings fell from a year ago in 57 of the 85 largest metro areas. The biggest declines were in Baton Rouge, LA (-55%), Salt Lake City, UT (-55%) and Allentown, PA (-52%). New listings rose the most from a year ago in Detroit, MI (+20%), Pittsburgh, PA (+11%) and Indianapolis, IN (+9%).

The housing market became less competitive in November than it was in prior months as homes spent longer on the market and were less likely to sell above list price. The typical home that sold in November went under contract in 22 days—nearly a week faster than a year earlier, when homes sold in a median 28 days, but up seven days from the record low of 15 days in June.

In November, 44% of homes sold above list price, down 12 percentage points from the record high in June, but up 9 percentage points from a year earlier. The average sale-to-list price ratio also dipped slightly in November to 100.6%, down from a record high of 102.6% in June but up from 99.5% a year earlier.

To read the full report, including charts and additional metro-level highlights, please visit: https://www.redfin.com/news/november-new-low-for-home-inventory/

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 is the current status of home inventory according to Redfin's November report for RDFN?

Redfin reported an all-time low in home inventory, with an 18% decrease year-over-year.

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

The median sale price increased by 15% to $383,100 in November.

What were the trends in closed home sales for RDFN in November?

Closed home sales fell by 6% from the previous year, indicating a decline in market activity.

What was the change in new listings of homes for sale for RDFN in November?

New listings decreased by 9% in November compared to the previous year.

How has the housing market impacted buyers during the holiday season according to RDFN?

The housing market is more challenging than ever, with fewer homes for sale and rising prices affecting buyer budgets.