Median Home Prices Continue to Explode

Key Highlights

• Median home prices hit $370,528 in April
• 49% of homes sold for over asking price

Home Prices Up +22% y/y in April

National median home prices hit $370,528 in April, a year-to-year increase of +22%, according to Redfin.

Sure, home buying and home selling came to a standstill  in April 2020 due to the COVID pandemic but still…$370,528 is a record high national median home price.

On top of this record high home price in April, 49% of home sold for over the asking price, also a record high.

This +22% home price increase in April came on the heels of March’s highest level of home price growth, +12%, in more than 15 years, according to the latest S&P CoreLogic Case-Shiller National Home Price Index recently released.

What Else is New?  Low Inventory = High prices

Daryl Fairweather, Redfin’s Chief Economist, said, “There simply aren’t enough homes for sale in America for everyone with the desire and the means to buy one right now.  Until new construction takes off – over the course of years, not months – home prices will continue to increase.”

Fairweather continued.  “To put the scarcity of housing into context, there is plenty of room for supply to increase and demand to taper off, and we would still find ourselves in a historically strong seller’s market.”

Regional Price Increases

Nation-wide, the 85 largest metro areas Redfin tracks experienced median home price increases.

Austin had the largest price increase at an eye-opening +42%.  Oxnard CA’s median home prices went up +26% as did Miami’s.

Honolulu’s median home price had the smallest increase at only +0.2% y/y.

Rounding out these price increases, Redfin reported that the average sale-to-list-price set a record high of 101.6%.

Number of Homes Sold

April 2021 saw an increase of +34% in the number of homes sold from one year ago. For comparative purposes when the pandemic is taken out of the picture, the number of homes sold in April 2021 increased only +8% from those sold in April 2019.

Places that experienced the most immediate and unexpected sales slowdowns in April 2020 also experienced the largest sales gains in April 2021…San Francisco home sales were up +184%, San Jose home sales were up +150% and Miami home sales were up +120% in April 2021 y/y.

Rochester NY was the only metro that saw a decline in home sales during April 2021 with a decline of -3% y/y.

Record Selling Pace

Days on the market also dropped dramatically on a year-to-year basis in April 2021.  Homes in Indianapolis sold in 4 days on average.  Some 50% of all homes in Denver, Seattle, Portland OR and Omaha NB sold in 5 days.

Housing Boom to Continue

With an average sale-to-list-price hitting 101.6% in April, Fairweather said,”‘This measure also typically peaks in June, so the next two months may also hit record highs if the market continues to follow a typically seasonal pattern into summer…this housing boom is nowhere close to over.”

Thanks to Redfin, the S&PCoreLogic Case-Shiller National Home Price Index, and HousingWire.

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