Home Sales Are Moving at Record Speeds

As housing supply dropped to a new low during the four week period ending March 6, three out of five homes that went under contract across the U.S. sold within two weeks, often by 1.1% above list price, Redfin reports. A surge in buying activity comes in the wake of suspended mortgage rates, which dropped as a result of the war in Ukraine, though the Fed could soon raise rates to combat heightened inflation.

At the start of the week, the median home sale price hit a new high of $369,125, up 16% year-over-year and a 35% increase from March 2020. Homes that sold were on the market for a median of just 25 days, down 9 days on average from a 34-day turnover process a year earlier and 53 days in 2020.

“Homebuyers are in a frenzy,” said Redfin Deputy Chief Economist Taylor Marr. “Buyers are reacting to changes in mortgage rates but are so far unfazed by the war in Ukraine, stock market volatility and rising oil prices. However, these risks are reaching levels that could be dangerous for the economy, and the Fed is on the cusp of raising rates further to cool inflation. The silver lining for housing is that the spike in mortgage rates has paused for now.”

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