Typical US Home Recently Sold for 1.4% Above Asking Price After Just 19 Days, Redfin Says
02:54 PM EDT, 05/07/2021 (MT Newswires) -- The US housing boom is at the stage where homes recently sold for an average of 1.4% above the asking price after just 19 days on the market, with nearly half under accepted offer within a week of listing, according to Redfin (RDFN).
The median home sale price was up 21% year-over-year to $348,500 during a four-week period ended May 2, the online real estate brokerage said, basing its analysis on multiple listing service data from more than 400 US metro areas.
One contributing factor in the price rise, Redfin said, was the higher proportion of costlier homes on the market versus a year ago. Another is the rising cost of inputs for new home construction.
"Lumber prices are surging, which has driven up prices of new homes and indirectly drives up prices of existing homes," said Daryl Fairweather, chief economist at Redfin.
The persistent shortage of homes for sale has contributed as well. New listings of homes for sale were down 8% from the same period in 2019 while pending home sales were 23% higher than two years ago, according to Redfin.
Homes sold during the recent four-week stretch were on the market for a record low average of 19 days, from 35 days a year ago. A record high of the 45% of the homes that went under a sales contract during the period had an accepted offer withing a week, and 58% within two weeks, Redfin said. A record 48% sold for more than the listing price, according to the company.
Housing demand will need to cool down, Fairweather said, to boost the supply of homes for sale. "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," he said.
Price: 56.09, Change: +3.66, Percent Change: +6.98