A Redfin report that analyzed the housing market over four weeks ending May 2 recorded a record high 21 percent year-over-year growth rate in the median home sale price, hitting $348,500. One contributing factor to the large rate of growth is that more high-end homes are being sold now than a year ago. Asking prices reached an all-time high of $360,975.
Several records were set during that period, according to the report, including a record low of just 19 days on market for homes that sold during the period, down 16 days from the same period a year ago; a record 48 percent of homes sold above list price, up 20 percentage points year-over-year; a record high 101.4 percent average sale-to-list price ratio, meaning the average home sold for 1.4 percent more than its asking price; a record high 58 percent of homes that went under contract had an accepted offer within the first two weeks, and a record 45 percent had an accepted offer within one week.
“Right now, we are seeing a substantial increase in home prices, which could be a precursor to more widespread inflation throughout the economy,” Redfin Chief Economist Daryl Fairweather said in a release. “Lumber prices are surging, which has driven up prices of new homes and indirectly drives up prices of existing homes.
“As states lift their pandemic restrictions, we will likely see more shortages and price increases on everything from gasoline to hotel stays and food. These price increases will likely be short-lived but could cut into homebuyers’ budgets and ease competition enough for the housing market to become more balanced,” Fairweather said. “A more balanced market could encourage more move-up homeowners to finally sell, because they won't be so fearful about being able to find and compete for a home to buy.”