The U.S. median home sale selling price increased 13% from 2019 to $319,178-the highest on record, in accordance with a new report from Redfin, the technology-powered real estate brokerage. This 13% year-over-year increase was the largest because October 2013.
Below are other key housing market takeaways for 434 U.S. metro areas during the 4-week period ending September 6.
Pending home sales rose 28% year over year, the biggest increase since the one month ending August 2, 2015.New listings of properties for sale were up 9% from the actual 12 months ago-the biggest increase given that the four weeks ending December 20, 2015.
Active listings (the number associated with homes listed for sale at any point throughout the period) fell 28% from 2019 to a new all-time low. The year-over-year decline has been about the same for the past couple of months.
46.4% of homes that went under contract had an accepted offer within the first two weeks on the particular market, the maximum level since at least 2012 (as far back as our data on this measure goes).
The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, rose to 99.3%-an all-time high along with a full percentage point higher than a year earlier.
For a few days ending September 6, the seasonally adjusted Redfin Homebuyer Demand Index was up 21% from pre-pandemic levels in January and February.
Home prices growth this high is making the actual real estate marketplace particularly difficult for first-time homebuyers right now, mentioned Redfin chief economist Daryl Fairweather. Rising prices are just one particular more reason with regard to website visitors to leave expensive urban neighborhoods behind.
The sudden rise of remote work means homebuyers who are priced out of one neighborhood to expand their search to less expensive areas. Consequently, they are pushing up home in those relatively affordable areas, causing more people to look to even more affordable areas, and so on. Price growth may slow in 2021, but even if it does, high prices are going to continue to make affordability a concern for buyers.
I have been helping more buyers from out of town lately, mostly from the Bay Area,? said Seattle Redfin agent Christian Cerone. They are unfazed by the intensity of the market, since that is been the norm there for quite a while. We have also started to see bidding wars even on homes above $1 million, which were seemingly immune to bidding wars even when the market got really crazy in recent years. With so much wealth coming into the town from more expensive places, there are plenty of buyers right now who have the potential to buy those $1-$2 million homes
Redfin agents throughout areas affected by wildfires are convinced that the smoke is slowing down some home-buying activity.
Home touring is reducing in San Francisco due to the fires-people don?t want to go outside with all of the smoke in the air, said local Redfin agent Gabrielle Bunker. Some buyers have also started raising concerns about being able to get fire insurance because insurance companies have tightened up their requirements for fire coverage.