The typical home sold in May went under contract in 34 days, according to a report by the real estate brokerage Redfin.
Redfin said May broke April’s record of 36 days, and was the fastest month recorded by the company since 2010. Redfin said the national median home sale price in May rose 6.3 percent year-over-year to $305,600.
“Prices are still increasing, but not at the same rate we saw earlier in the spring,” Redfin Senior Economist Taylor Marr said in a release. “The record percentage of homes sold above list price is at odds with the higher percentage of price drops in May. This tells us that while it’s still very much a seller’s market, price growth and rising mortgage rates may be pushing buyers to the limit of what they’re able to pay.”
According to the report, the number of newly listed homes increased 4.3 percent compared to May 2017. However, the overall supply of homes declined 5.4 percent during the same time period. Just 2.5 months of supply remained at the end of the month.
Nearly 28 percent of the homes sold in May sold above their list price, which Redfin said was the highest percentage it has recorded. Nearly a quarter of homes for sale had a price drop in May, the highest percentage of price drops since September 2017.
Other highlights of the report included:
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Denver was the fastest market, with the typical home going under contract in just six days. Seattle and Tacoma, Wash. were the next fastest markets at seven median days on market, followed by Boston and Grand Rapids, Mich. at eight median days on market.
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The most competitive market in May was San Jose where 83.8 percent of homes sold above list price, followed by 79.6 percent in San Francisco, 76.2 percent in Oakland, 63.1 percent in Tacoma, Wash., and 61.9 percent in Seattle.
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San Jose had the nation’s highest price growth, rising 27.6 percent since last year to $1,250,000. Tacoma had the second highest price growth at 19.6 percent year-over-year, followed by Memphis (16.9 percent), Las Vegas, (15.9 percent) and Rochester, N.Y. (15.4 percent).