- Pending sales, home prices and new listings all up compared to one year earlier
- Median home sale price climbed +15% y/y to $321,553, the highest median home sale price ever
- 43% of homes that went under contract did so within first two weeks on the market
Despite there being a slight pause in real estate action during election week, “people are resuming their plans to move, “ said Daryl Fairweather, the chief economist with Redfin. “…prices will continue to surge as long as there is an imbalance between sellers and buyers. (And) while low mortgage interest rates motivate homebuyers to buy, homeowners can take advantage of low rates by refinancing and staying put.”
Pending home sales have increased +31% from one year ago and pending sales that went under contract increased some +43% within the first two weeks of November. Mortgage purchase applications were up +16% from one year prior during the first week of November.
Redfin’s Homebuyer Demand Index is now well above pre-pandemic levels in January and February at +27%. As a result, the average sale-to-list price hit 99.5%, a record high and +1.5% higher than one year prior. Such high demand also accounts for more than 50% of offers having to contend with bidding wars.
Despite mortgage interest rates being below 3% since July, Fairweather believes “…mortgage rates could fall even further (and) lower mortgage rates could push even more buyers to purchase a home in the (coming) months.”
Sellers may be becoming a bit less reluctant to list their homes for sale as new listings increased +7% y/y in mid-November despite active listings being down -29% from 2019.
It will be interesting to watch where the housing market goes now that election results have become more certain AND that two COVID-19 vaccines will become available within early spring months, if not sooner.
Thanks to Redfin.
Also read: “Frenzy” in Vacation Towns’ Luxury Markets, Q3 2020 Earnings for Sotheby’s, RE/MAX & Keller Williams, Podcast: Why You Didn’t Get The Listing (How To Never Lose A Listing Again) | Tim and Julie Harris