Redfin, the Seattle-based technology-powered real estate brokerage firm, reported on Friday (1-14-22) that there were fewer homes than ever available for sale in December. This drove seasonally adjusted home sales down -3.6% from November and -11% when compared to December 2020 — the largest month-over-month sales decline since May 2020. On the other hand, home prices surged 15% higher year-over-year, marking the 17th consecutive month of double-digit home price increases.
The typical home that sold in December went under contract in 24 days — a week faster than a year earlier, when homes sold in a median 31 days, but up nine days from the record low of 15 days in June.
Also, 43% of homes sold above list price, down 14 percentage points from the record high in June, but up 9 percentage points from a year earlier. The average sale-to-list price ratio in December was 100.5%, down from a record high of 102.6% in June but up from 99.4% a year earlier.
In a statement prepared to accompany the release of the report, Daryl Fairweather, Redfin’s Chief Economist said, “Home sales are slumping, but not for lack of demand. There are plenty of homebuyers on the hunt, but there is just nothing for sale. In many markets, shopping for a home feels like going to the grocery store only to find the shelves bare. In January, I expect to see more buyers and sellers in the market, but demand will increase more than supply — pushing prices higher at the start of this year.”
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Redfin Reports Home Sales Posted Largest Monthly Decline Since Pandemic Onset