Houses Continue to Sell at a Record Pace Just as Supply Dips to a Record Low

Redfin, the Seattle-based, technology-powered real estate firm, in its latest report (3-10-22), which covers a four-week period of home buying and selling transactions ending March 6, 2022, reported that three out of five homes that went under contract for sale found a buyer within two weeks. Redfin says that is an all-time record high and comes at the same time supply shrank to new record lows.

The report also reveals that recent home sellers enjoyed the biggest price premiums ever seen this time of year, with the typical home selling for 1.1% above list price. Last year at this time, the typical home sold for 0.3% below list price. The median home sale price shot up 16% year-over-year to a new high of $369,125.

In remarks prepared for the release of the report, Redfin Deputy Chief Economist Taylor Marr said, “Homebuyers are in a frenzy. Buyers are reacting to changes in mortgage rates but are so far unfazed by the war in Ukraine, stock market volatility and rising oil prices. However, these risks are reaching levels that could be dangerous for the economy, and the Fed is on the cusp of raising rates further to cool inflation. The silver lining for housing is that the spike in mortgage rates has paused for now.”