January Housing Market Remains Red Hot with Double-Digit Increases in Home Sales and Prices

Redfin, the Seattle-based technology-powered real estate brokerage is reporting that the national medium home-sale price rose 14% year-over-year to $ 330,500 in January. This increase is just below the largest increase which was 14.5% in July 2013. Closed home sales were up 20% from a year earlier and pending homes sales were up 37%, while new listings declined 6%. In commenting on this report, Redfin’s chief economist Daryl Fairweather said, “The imbalance between supply and demand reached a new high in January. Buyers were eager to make offers and make them quickly to take advantage of historically low mortgage rates while they last. But many homeowners who want to move feel stuck with limited options of homes to move to, frustrated about homes finding buyers within hours of hitting the market and defeated after repeatedly losing out in bidding wars. People who are committed to finding a home this season should plan for the harsh reality that they may need backup homes in mind when they go on a home tour and when they submit an offer or be prepared to wait weeks or months for another ideal home to hit the market.”