Development in checklist costs is down 3 share factors because the finish of August, however pending gross sales had been nonetheless up 30%
Key housing market takeaways for 434 U.S. metro areas throughout the 4-week interval ending September 27:
- The median residence sale value elevated 14% yr over yr to $319,769—the best on document. The 14% leap was the biggest since August 2013. Because the four-week interval ending July 5, residence costs have elevated 6.5%. Over that very same interval in 2018 and 2019, costs declined a median of 4.2%.
- The median asking value of latest listings was up 12.8% from a yr earlier. This development fee has been declining because the four-week interval ending August 30, when it peaked at 15.7%.
- Pending residence gross sales climbed 30% yr over yr.
- New listings of properties on the market had been up 5% from a yr earlier. 12 months-over-year development in new listings have been above 5% because the four-week interval ending August 16.
- Lively listings (the variety of properties listed on the market at any level throughout the interval) fell 28% from 2019 to a brand new all-time low. The speed of year-over-year provide declines has remained constant at this stage for the previous few months.
- 45.8% of properties that went beneath contract had an accepted provide inside the first two weeks in the marketplace. This has additionally held comparatively regular for the final 17 weeks.
- The common sale-to-list value ratio, which measures how shut properties are promoting to their asking costs, rose to 99.4%—an all-time excessive and 1.2 share factors greater than a yr earlier.
- For the week ending September 27, the seasonally adjusted Redfin Homebuyer Demand Index was up 34.8% from pre-pandemic ranges in January and February.
- Mortgage applications decreased 2% week over week throughout the week ending September 25. For the week ending October 1, 30-year mortgage rates fell to 2.88%. Charges have been under 3% since late July.
“The query on everybody’s thoughts is ‘how briskly can costs hold rising?’,” stated Redfin chief economist Daryl Fairweather. “Though the housing market continues to be red-hot, there are some early indicators we could also be nearing peak value development. Sellers’ asking costs are nonetheless up considerably from final yr, however by a decrease fee than they had been rising throughout the summer season. Mortgage purposes are additionally starting to wane, and extra new listings are coming onto the market. That is prone to be nearly as good because it will get for residence sellers, who undoubtedly have had it excellent for a really very long time.”
Lack of sturdy development in new listings is probably going a direct results of the continued pandemic. In a current survey of over 1,400 homebuyers and sellers, 20% of respondents stated that now’s a foul time to promote a house, up from simply 9% within the first quarter of the yr. In the identical survey 38% of residence sellers stated that they’ve well being or security considerations as a result of coronavirus pandemic, in comparison with simply 8% of homebuyers who cited coronavirus as a priority.