Homes Sales Accelerating at Record-Breaking Pace

According to the latest report from Redfin, the Seattle-based, technology-powered real estate brokerage firm, in the four weeks ending February 13, 2022, homes sold faster than ever before. A record 57% of homes that went under contract did so within two weeks of being listed.

The report also indicates that people purchasing homes now are paying more than ever before, too—a median $1,997 per month—as asking prices have soared 16% year-over-year to a new high, and mortgage rates shot up to their highest level since May 2019.

The pace and cost of homebuying are soaring largely because there is so little to buy. New listings fell -8% year-over-year, sending overall supply to a new low and putting a damper on pending sales, which fell -2.7%.

In comments prepared for the release of the report, Redfin Deputy Chief Economist Taylor Marr said, “The acute shortage of new listings of homes for sale is the biggest problem the housing market faces right now. If you think of the housing market like a bathtub, water (supply of homes for sale) is flowing down the drain (buyers sucking up supply) faster than new water (new listings) is coming in through the faucet. Rising mortgage rates may slow the drain down a bit (cool demand) as record-high monthly payments take a toll on buyers’ budgets. Bottom line: without a flood of new listings, we will be sitting in a very shallow bath for a while.”