Home prices and year-over-year price gains hit another high as prices continued to rise during a time of year they usually decline, according to a report from Redfin.
For the week ending Aug.16, the seasonally adjusted Redfin Homebuyer Demand Index was up 29 percent from pre-pandemic levels in January and February. Redfin said the median price of homes sold during the four-week period ending Aug.16 was up 11 percent year-over-year — the largest increase in over six years — to a new all-time high of $316,375.
“Some of the homebuyers I’ve worked with have come into the process thinking that thanks to low interest rates and the pandemic they’ll be able to get a deal,” Rhode Island Redfin agent Lisa Bernardeau said in a release. “Unfortunately, I have to burst their bubble and explain that it’s actually the opposite — home prices are up 10 (percent) to 20 percent from last year, depending on the neighborhood.”
According to the report, the number of homes listed for sale during the period was down 28 percent from a year ago. The number of new listings increased 2.2 percent for the four-week period, the largest year-over-year increase since mid-March.
“Schools are beginning to start again, and it seems like that has slowed the amount of homebuyer activity a little bit, but that doesn’t make the market less crazy,” said Oakland, Calif. Redfin agent Veronica Clyatt said. “Instead of 20 offers on a home, you may ‘just’ see 10. But prices have not gone down — home price increases haven't slowed at all.”