Listing prices of homes for sale jumped 13 percent, to an all-time high of $328,500 during the four-week period ending July 12, according to a new report from Redfin.
The report said closed sale prices increased 6 percent during that same period. During the one-week period ending July 12, the percent of active listings with a price drop hit an all-time low of 34.4 percent, Redfin found.
“The housing market usually slows down in July and August when people take time off for vacations,” Washington, D.C. area Redfin agent Kris Paolini said in a release. “This year though, a lot of vacations have been cancelled, and buyers who had previously given up their search are being lured back by low mortgage rates. The market has stayed hot through the summer and it doesn’t look like we’ll see the typical slowdown in August, either.”
Redfin said sale-to-list price ratios, which measure how far below the asking price the buyer typically ends up paying for a home, have climbed to an average of 98.8 percent, up 0.2 percentage points from the same period in 2019.
According to the report, the number of new homes for sale continues to lag behind 2019. For the four-week period ending July 12, Redfin said 5 percent fewer new listings hit the market than the same period a year earlier and the total number of homes for sale was down 28 percent.
“Listings have started picking up, but it’s still slow,” Detroit Redfin agent Tony Orlando said. “Homeowners have been very hesitant to list their homes for sale because they had assumed that the pandemic would hurt home buying demand and depress values. They’re beginning to see how hot the market really is, but it’s a slow process.”