If anyone needed any more evidence that finding a home is only becoming more difficult, June provided it. Not only was last month the fastest moving housing market on record since Redfin began tracking the metric in 2009, it was also the most competitive.
A typical home in June went under contract in just 41 days, a full four days shorter than what was seen in June 2015. One quarter of homes flew off the market in two weeks, over 3 percent more than one year prior, Redfin reports. A large aspect of the fast-moving market and increased competition can be attributed to a seemingly ever-decreasing supply. Months of supply fell to 2.8 months, its lowest level yet, meaning demand has not outweighed supply this badly in the past seven years.
A by-product of the increased demand was a concurrent increase in aggressive offers. The average sale-to-list price percentage increased from 94.9 percent to a high of 95.5 percent. In San Jose, for example, 68 percent of homes sold in June sold for above their list price.
The fast moving, highly competitive market meant June saw an average year-over-year price increase of 5.5 percent. Despite this increase in home values, the number of new sellers remained essentially unchanged and inventory posted a 7.1 percent year-over-year decline.
For Redfin’s full breakdown of June’s housing market, plus additional lists, graphs, and charts, click the link below.
