Skip to main content

Redfin: 55% Of Pending Homes Go Under Contract Within Two Weeks

Navi Persaud
Feb 01, 2021
Person signing a mortgage contract with a digital house overlay.

Limited housing inventory is helping the industry break new records, however, a slight increase in inventory could be on the way. A Redfin report revealed that 55% of pending homes found buyers within 14 days for the 4-week period ending Jan. 24, 2021. This marks the largest share of pending homes to find buyers in as quick as two weeks in nine years.

"Buyers are incredibly hungry for listings, but unfortunately there isn't much to choose from, and that scarcity is making buyers all the more frenzied," said Redfin chief economist Daryl Fairweather. "As a result, the majority of the homes that hit the market are getting multiple offers right away. Not only do you have to be fast to win a home, you have to be prepared and resourceful. I recommend that buyers on a tight budget target homes that are priced 5 to 10 percent below their maximum price so they have room to increase their offer in a bidding war."

According to the report, pending home sales were up 30% year-over-year and new listings of homes for sale were down 12%, the largest decline since May 2020.

"43% of homes that went under contract had an accepted offer within the first two weeks on the market, well above the 35% rate during the same period a year ago," according to the report. "During the week ending January 24, this measure hit 55%—the highest point since at least 2012 (as far back as Redfin's data for this measure goes)."

"The inventory is there; it's lying in wait," said Seattle Redfin real estate agent Scott Petrich. "Now that the end of the pandemic is in sight, people will gradually start listing homes for sale. And once more companies and workplaces start calling employees back to the office, some homebuyer demand will shift back toward apartments and townhomes. Right now all the pressure is on single-family, suburban homes."

For the week ending Jan. 24, 2021, the seasonally adjusted Redfin Homebuyer Demand Index, which measures requests for home tours and other services from Redfin agents—was up 60% from pre-pandemic levels in January and February of 2020—the highest level on record.

Click here to learn more from Redfin's latest report.

Published
Feb 01, 2021
Reports: Evergrande Group Makes $83.5M Interest Payment

Faltering Chinese development firm fends off default with payment to international bondholders.

Industry News
Oct 22, 2021
FAR Establishes Borrower Engagement Division

Finance of America Reverse LLC announced its formally established Borrower Engagement Division.

Industry News
Oct 22, 2021
Automating Appraisals No Panacea For Removing Bias

With racism 'grandfathered in' to housing prices in minority neighborhoods, a solution to 'unconscious bias' is difficult to find

Industry News
Oct 21, 2021
Reports: Evergrande Group Arranges Bond Extension

Reuters, REDD say company's billionaire chairman has agreed to provide additional collateral to ensure a construction project tied to a $260M bond is completed.

Industry News
Oct 21, 2021
New American Funding Hires Regional Manager

Mark Tribuna will lead effort to expand company's partnership with affordable nonprofit builders in mid-Pacific region

Industry News
Oct 21, 2021
Rocket Pro Announces Initiatives To Boost Brokers

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021