The number of homes for sale hit an all-time low during the week ending on November 28, 2021, according to a new Redfin report. During an unseasonably hot time in the market, sustained demand pushed the median price of homes towards another record-high, and a third of homes sold in a week or less.
"The number of homes for sale typically declines another 15% in December," said Redfin Chief Economist Daryl Fairweather. "That means that by the end of the year, there will likely be 100,000 fewer homes for sale than there were in February when housing supply last hit rock bottom. I think more new listings will hit the market in the new year, but there will also be a long line of buyers who are queuing up right now."
The median home sale price hit an all-time high of $360,375 for the last full week of November, up 14% from the same period last year and up 1.5% from a month earlier. The month-over-month growth also far surpasses last year’s 0.2% growth between October and November.
The asking price of newly listed homes were up 12% from the same time last year and up 27% from 2019, reaching a median of $349,750. The number of new listings of homes for sale fell 4% from last year but are still up 12% from 2019.
During the seven-day period ending on November 28, active listing fell to a new all-time low. Throughout the month of November, active listings fell 23% from 2020 and 42% from 2019.
In total, 45% of homes that went under contract accepted an offer within the first two weeks, while 33% of homes that went under contract accepted an offer within the first week of hitting the market. Homes that were on the market during the month of November sold in a median of 25 days.
"Meanwhile, headlines and new restrictions related to the omicron variant of the coronavirus might fuel some uncertainty and volatility in the economy," Fairweather added. "In the short term, global interest rates, including mortgage rates, could fall. In this extremely tight housing market, we would quickly see a proportional increase in competition and home prices."
