Consumers appear undeterred, as pending gross sales soar 28% and a 9% enhance in new listings brings little reduction.
Key housing market takeaways for 434 U.S. metro areas throughout the 4-week interval ending September 6:
- Median residence sale value elevated 13% from 2019 to $319,178—the very best on document. The 13% year-over-year enhance was the most important since October 2013.
Pending residence gross sales climbed 28% 12 months over 12 months, the most important enhance because the 4 weeks ending August 2, 2015.
- New listings of houses on the market have been up 9% from a 12 months in the past—the most important enhance because the 4 weeks ending December 20, 2015.
- Energetic listings (the variety of houses listed on the market at any level throughout the interval) fell 28% from 2019 to a brand new all-time low. The year-over-year decline has been about the identical for the previous couple of months.
- 46.4% of houses that went underneath contract had an accepted provide inside the first two weeks available on the market, the very best stage since a minimum of 2012 (way back to our information on this measure goes).
- The typical sale-to-list value ratio, which measures how shut houses are promoting to their asking costs, rose to 99.3%—an all-time excessive and a full proportion level increased than a 12 months earlier.
- For the week ending September 6, the seasonally adjusted Redfin Homebuyer Demand Index was up 21% from pre-pandemic ranges in January and February.
“House value progress this excessive is making the housing market particularly tough for first-time homebuyers proper now,” mentioned Redfin chief economist Daryl Fairweather. “Rising costs are simply another reason for individuals to depart costly city neighborhoods behind. The sudden rise of distant work has allowed homebuyers who’re priced out of 1 neighborhood to broaden their search to extra inexpensive areas. In flip, they’re pushing up residence costs in these comparatively inexpensive areas, inflicting extra individuals to look to much more inexpensive areas, and so forth. Worth progress might sluggish in 2021, however even when it does, excessive costs are going to proceed to make affordability a priority for patrons.”
“I’ve been serving to extra patrons from out of city currently, principally from the Bay Space,” mentioned Seattle Redfin agent Christian Cerone. “They’re unfazed by the depth of the market, since that’s been the norm there for fairly some time. We’ve additionally began to see bidding wars even on houses above $1 million, which have been seemingly proof against bidding wars even when the market acquired actually loopy lately. With a lot wealth coming into the town from costlier locations, there are many patrons proper now who’ve the potential to purchase these $1-$2 million houses.”
Redfin brokers in areas affected by wildfires report that the smoke is slowing down some home-buying exercise.
“House touring is slowing down in San Francisco as a result of fires—individuals don’t need to go outdoors with all the smoke within the air,” mentioned native Redfin agent Gabrielle Bunker. “Some patrons have additionally began elevating issues about with the ability to get hearth insurance coverage as a result of insurance coverage firms have tightened up their necessities for hearth protection.”