SEATTLE, Oct. 8, 2020 /PRNewswire/ -- (NASDAQ: RDFN) — The
median home sale price increased 15% year over year to $320,625—the highest on record, according to a
new report from Redfin (redfin.com), the technology-powered real
estate brokerage. The largest increase ever recorded in the
Case-Shiller national home price index (which goes back through
1988) was 14.5% in September
2005.
Below are other key housing market takeaways for 434 U.S. metro
areas during the 4-week period ending October 4.
- In the week ending October 4,
home prices were up 16% from the same week a year earlier. Since
the four-week period ending July 5,
home prices have increased 6.8%. Over that same period in 2018 and
2019, prices declined an average of 4.4%.
- The median asking price of new listings was up 14.0% from a
year earlier, an uptick from 12.9% during the four weeks ending
September 27.
- Pending home sales climbed 26% year over year, the smallest
growth rate since the four-week period ending August 16.
- New listings of homes for sale were up 4% from a year earlier.
This is the first time year-over-year growth in new listings have
fallen below 5% since the four-week period ending August 16.
- Active listings (the number of homes listed for sale at any
point during the period) fell 28% from 2019 to a new all-time low.
The rate of year-over-year supply declines has remained consistent
at this level for the past few months.
- 45.2% of homes that went under contract had an accepted offer
within the first two weeks on the market. This has also held
relatively steady for the last 17 weeks.
- The average sale-to-list price ratio, which measures how close
homes are selling to their asking prices, rose to 99.4%—an all-time
high and 1.2 percentage points higher than a year earlier.
- For the week ending October 4,
the seasonally adjusted Redfin Homebuyer Demand Index was up 34.9%
from pre-pandemic levels in January and February.
- Mortgage applications increased 5% week over week during the
week ending October 2, another
indicator that demand remains strong. For the week ending
October 8, 30-year mortgage rates
were flat at 2.87%. Rates have been below 3% since late July.
"Large, expensive, luxury homes are taking up a bigger share of
the homes that are selling, which is driving a high growth rate for
the median sale price," said Redfin chief economist Daryl Fairweather. "Remote work is increasing
demand from affluent people, while middle-income people are more
often expected to do their jobs in-person, and many have been
affected by furloughs and shutdowns."
We will continue to track changes in sellers' asking prices,
which tend to precede trends in overall home price growth. Even as
sales continue to experience a typical seasonal slowdown, real
estate remains firmly in seller's market territory.
"Sellers that are just getting into the market are seeing they
can set their asking price a little higher than what they may have
expected because inventory is so low and the buyer pool is still
growing," explained San Antonio Redfin real estate agent
Jim Seifert. "Homebuying demand is
still really strong, which has really pushed multiple offers to a
whole new level. You're not going to see prices go down right
now."
To view the full report, including charts and methodology,
please visit:
https://www.redfin.com/blog/record-price-growth-in-real-estate-market/
About Redfin
Redfin (www.redfin.com) is a technology-powered residential real
estate company, redefining real estate in the consumer's favor in a
commission-driven industry. We do this by integrating every step of
the home buying and selling process and pairing our own agents with
our own technology, creating a service that is faster, better and
costs less. We offer brokerage, iBuying, mortgage, and title
services, and we also run the country's #1 real estate brokerage
search site, offering a host of online tools to consumers,
including the Redfin Estimate. We represent people buying and
selling homes in over 90 markets in the
United States and Canada.
Since our launch in 2006, we have saved our customers over
$800 million and we've helped them
buy or sell more than 235,000 homes worth more than $115 billion.
For more information or to contact a local Redfin real estate
agent, visit www.redfin.com. To learn about housing market trends
and download data, visit the Redfin Data Center. To be added to
Redfin's press release distribution list, email press@redfin.com.
To view Redfin's press center, click here.
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SOURCE Redfin