The U.S. median home asking price hit a new all-time record of $330,225, up 10% year-over-year, according to Redfin. The company stated that typically, asking prices do not pass the previous year's peak until March. The early spike could be pointing towards a stronger increase in price growth than usual for the spring buying season.
Additionally, Redfin reported that the median home sale price increased 15% year-over-year to $318,250 and new listings of homes for sale dipped 12% from the same period in 2020.
"With more and more homes going off the market before buyers have had a chance to tour them, it has never been more important for homebuyers to be well prepared," said Redfin chief economist Daryl Fairweather. "That means setting alerts to let you know immediately when homes hit the market and going to see them ASAP or having a plan in place with your agent to make an offer sight-unseen. Buyers with flexibility on timing and location may also want to consider new construction, which made up 22% of homes for sale in December—the highest share on record. An advantage of homes sold by builders is that typically the price is the price, and they are sold on a first-come, first-served basis. So while you still need to be prepared to act quickly when a new-construction home becomes available, you don't have to worry so much about competing in a bidding war with escalating prices."
Redfin also revealed that for the week ending Jan. 31, 2021, the seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other services from Redfin agents—was up 72% from the same period a year ago.
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