Home Buyers Continued to Struggle as Real Estate Markets Remained Red Hot in January 2022

In a new report from Redfin, the Seattle-based, technology-powered real estate brokerage firm, homebuyers continue to struggle: 45% of homes are now selling within two weeks of being on the market. Of that number, some 35% of homes are going on contract in under a week. Both rates are the highest ever seen for this time of the year.

The Redfin report points out that in spite of the market’s unforeseen seasonal intensity and demand, pending home sale were down -1%. However, the Redfin Homebuyer Demand Index was up 9%.

The report also notes that new listings also fell -12%, seeing their largest drop since June 2020, and dropping the total number of homes for sale to another new low. Homeowners who are actively on the market appear to be confident, as the median asking price climbed 13% to $360,281 — just shy of October’s all-time high.

In comments prepared for the release of the report, Redfin Chief Economist Daryl Fairweather said, “The early spring is poised to be the hottest housing market on record; we may start to see most homes going under contract within two weeks, but these conditions are likely to be short-lived.”

“Now that the stock market is down about 10% from the start of the year and mortgage rates are up nearly half a point, the housing market could lose its luster soon,” Fairweather added. “If that happens, I expect the inventory shortage to finally reach its nadir because overpriced homes will start to pile up on the market.”