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A report from Redfin revealed the median home sale price increased 20% since last year to $347,500. This number may be inflated due to the low median sale price around this time in 2020. Additionally, there are more luxury homes being sold.
The lack of new inventory means home buyers won’t find any relief searching for a home this spring season. Asking prices have reached an all-time high of $347,500, and 46% of homes sell for more than their listing price. The average sale-to-list price ratio increased 2.5 percentage points year over year to an all-time high of 101.2%. This means the average home sold for 1.2% more than its asking price.
Additionally, houses now stay on the market a median of 20 days before being sold, which is 16 days less than the median was this time last year. For homes that went under contract, 58% accepted an offer within the first two weeks on the market.
Redfin Chief Economist Daryl Fairweather said, "I am concerned about how we as a society are going to reckon with just how expensive housing has become."
Active listings fell 48% from the same time period in 2019, a new all-time low. Mortgage purchase applications decreased 5% week-over-week (seasonally adjusted). For the week ending April 29, 30-year mortgage rates increased slightly to 2.98%.
"But I'm not worried about a housing crash because these sky-high prices are supported by the new reality of well-funded buyers who are often benefiting from newfound mobility via remote work," added Fairweather. "As the economy recovers, we have the opportunity to reimagine our country's role in supporting a healthy housing market."
Click here to view the full report.