Home Prices Jump 13 Percent, Pending Sales Up 38 Percent

Data from Redfin revealed that the median home sale price increased to 13% year-over-year to $319,000 during the 4-week period ending Jan. 3, 2021. Redfin also reported a 38% increase in pending home sales and new listings, according to a press release.

"The economy faces new challenges in the next few weeks, which are likely to see continued political instability and rising coronavirus cases," said Redfin chief economist Daryl Fairweather. "Still, it's unlikely that either will have a meaningful or long-term impact on homebuying demand, which, already extremely strong, is now bolstered by even lower mortgage rates. Migration and progressive economic policies will shape the housing market in the months to come. The recent migration of Americans to affordable places like Atlanta, Phoenix and suburbs across the country has contributed to what will be a major change in fiscal and economic policy starting on January 20. While more government spending could lead to moderate mortgage-rate increases, it will also likely include programs to make homeownership affordable to more people."

According to the report, new listings of homes for sale were up 7% from 2020, which marks the lowest increase since July. Active listings are down 32% from 2020, reaching a new all-time low.

Additionally, 38% of homes that went under contract had an accepted offer within the first two weeks on the market, well above the 25% rate during the same period a year ago.

Click here to learn more from the Redfin report.