Half of Homes Sold Above Their Listing Price in the 4-week Period Ending May 16

According to Redfin, the Seattle-based technology-powered real estate brokerage, 50% of homes sold during the four weeks ending May 16, 2020 sold above their listing price. Year-over-year, this is an increase of 23 percentage points. During the four-week period, prices hit a record high of $352,975 and were up 24% year over year, also a record. Asking prices increased to $358,975, also a record high. The sales-to-list price ratio, which measures how close homes are selling to their asking price hit a record-high of 101.7%, meaning that the average home sold for 1.7% more than its asking price. Houses during the period sold after being on the market for a record low of just 17 days. Fifty-eight percent of homes went under contract for sale had an acceptable offer within the first two weeks of being on the market. Forty-five percent of those homes under contract for sale sold in less than a week. In a statement prepared for the release of the report, Redfin’s Chief Economist Daryl Fairweather said, “We are seeing some early signs that the market has reached its maximum temperature. Mortgage purchase applications and pending sales have decreased, which may be a sign that some buyers would rather spend their money on restaurants, vacations, and other things they have held back on for the past year, instead of on housing now that the threat of the pandemic is dissipating in America. But make no mistake, the housing market is still very hot and will remain hot for the rest of the year.”