Selling Activity Remains Strong Despite Lack of New Construction
The total number of homes newly listed for sale during the four week period ending February 20 was down just 2% year-over-year, according to Redfin, signaling strong home-selling activity in the midst of hearty demand. During the same period, the median home price rose 15% year-over-year to a new record high of $358,750, and monthly mortgage payments also rose to an all-time high of $2,014, a 24% year-over-year increase.
Despite increased activity from sellers, the total number of active listings dropped to a new low of 452,000, and 58% homes that went under contract also had an accepted offer within the first two weeks on the market, revealing a lightning sales pace exacerbated by limited supply.
The market again set new record highs for home sale prices, asking prices, buyers’ mortgage payments and the share of homes selling within days of hitting the market. We also saw a new all-time low for the total number of homes for sale.
”The good news for homebuyers is that each week more homes are being listed for sale,” said Redfin Deputy Chief Economist Taylor Marr. “There is growing evidence that January’s dramatic drop in new listings was only a temporary blip driven by heavy winter storms and the spike in Covid cases, so homebuyers may have some hope for better selection in the coming spring season.”