According to Redfin, homes sold in May 2018 went under contract in 34 days, breaking the last record of 36 days set in April.
The total supply of for-sale homes in May was 5.4 percent less than it was in May 2017, with only 2.5 months of supply available. A balanced market between buyers and sellers has a six-month supply. Yet, there were more listings on the market, 4.3 percent more year-over-year. Homes that did sell in may went for an average of 27.6 percent above the list price, breaking another record, CNBC reports.
Interestingly, nearly a quarter of sellers in May dropped their prices, the highest percentage since September. "Prices are still increasing, but not at the same rate we saw earlier in the spring," said Redfin senior economist Taylor Marr. "While it's still very much a seller's market, price growth and rising mortgage rates may be pushing buyers to the limit of what they're able to pay."
