Homes Are Selling in Record Time and at a Record Price

Redfin, the Seattle-based, technology powered real estate brokerage is reporting that for the 4-week period ending on March 28, 2021, the median home-sale price has increased, year-over-year (y-o-y) 17% to $335,613, setting another new all-time record high. The asking prices of newly listed homes rose 14% y-o-y, while active listings (the number of homes listed for sale at any point during the period) fell -42% from the same period in 2020 to a new all-time low. This is the largest decrease on record in this data, which goes back through 2016. And 59% of homes went under contract and had offers accepted within 2-weeks of listing. Redfin went on to report that 41% of home sold for more than their list price, an all-time high and were 16% higher y-o-y. And finally, the average sale-to-list price ratio, which measures how close homes are selling to their asking price increased to 100.4%, another all-time and 2 percentage points higher y-o-y. In remarks prepared for the release of the report, Redfin chief economist Daryl Fairweather said, “Some homebuyers have reached their limit on bidding wars and soaring prices. Add to the mix a dwindling number of homes for sale and rising mortgage rates, and the typical family that is still searching for an affordable house may have missed the boat. First-time homebuyers who were already stretching their budgets will have to make bigger compromises on size and location or resign to renting for another year. However, those who are flexible should look to the condo market where there’s still a bit less competition.”