Redfin, the Seattle-based technology powered real estate brokerage is reporting that the median home sale price increased 17% year-over-year (Y-O-Y) to $328,350 — an all-time high — for the week ending March 7, 2021. This is the largest increase on record in this data set, which goes back through 2016. New home sales listings were down -17% Y-O-Y. Active listings (the number of homes listed for sale at any point during the period) fell -41% from 2020 to a new all-time low. This is the largest decrease on record in this data, which goes back through 2016. The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, increased to 99.8% — 1.7% points higher than a year earlier and an all-time high. During the 7-day period ending March 7, the ratio shot up to 100.1%, the first time on record since this data series began in 2016 that the average home has sold for above its list price nationwide. In prepared remarks for the release of this report, Redfin’s chief economist Daryl Fairweather said, “Sellers’ asking prices have marched upward every week this year. Buyers have learned that if they aren’t aggressive enough one week, they will have to bid higher on a home that’s listed the following week. This super competitive housing market has been fueled by rock-bottom mortgage rates, so home prices should start to grow at a slower rate as mortgage rates tick up.”
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Home Prices Increased a Record 17%, Pending Sales Up 19% From a Year Earlier