Five Consecutive Months of Record-Breaking Home Prices Comes to an End

Redfin, the Seattle-based, technology-powered, real estate company, is reporting that in the four-week period ending July 25, 2021, for the first time since early March 2021, the median home-sales price of $362,750 did not set a new record high. Instead, it was flat (-0.2%) but was still 18% higher year-over-year. Redfin did note that pending home sales were up 3%, the smallest year-over-year increase since the four-week period ending June 28, 2020. Also of interest is that 36% of homes that went under contract had an accepted offer within one week of hitting the market. While 49.7% of homes that went under contract had an accepted offer within the first two weeks on the market, well above the 44% rate during the same period a year ago. And the average home sold for 2.1% above its asking price.

In remarks prepared for the release of the report, Daryl Fairweather, Redfin’s Chief Economist said, “Although homes are much pricier than they were before the pandemic, homebuyers now have the benefit of very low mortgage rates and a little less competition than they faced earlier in the summer.” Fairweather went on to say that, “This week a young first-time buyer with a FHA loan had her offer accepted on a home near Myrtle Beach, SC, after losing out in five bidding wars. I am hopeful that more opportunities like this will arise in the coming weeks if things continue to stabilize.”