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The national median home-sale price increased 14% year-over-year to $330,500 in January, according to Redfin. The company reported that the 14% gain is just shy of the largest increase seen since 2013. Meanwhile, closed home sales were up 20% year-over-year, with pending sales up 37% and new listings down 6%.
"The imbalance between supply and demand reached a new high in January," said Redfin chief economist Daryl Fairweather. "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."
The report also showed median price increases in all 85 of the largest metro areas that Redfin tracks. The largest price increases occurred in Camden, NJ; Allentown, PA and Detroit, MI.
The 20% year-over-year gain in home sales for January was down from October's record of 25%, however, it still marks the third-highest gain on record since 2013, according to the report.
"Active listings—the count of all homes that were for sale at any time during the month—fell 24% year over year to their lowest level on record in January," according to the report.
"This also marks the largest year-over-year drop on record and the 18th-straight month of declines."
Additionally, 33% of homes sold above list price in January, down slightly from its 35% peak in November and up 19% year-over-year.
Click here to read more from the Redfin report.