Closed sale prices, which lag listing prices, were also up 6%. Home prices are turning in monthly gains at a time of year when prices normally start heading down because people shift their focus from buying and selling homes to vacations and preparing for the start of school.
Buyers are coming up to meet sellers' rising price expectations. Sale-to-list price ratios, which measure how far below the asking price the buyer typically ends up paying for a home, are also climbing, to an average 98.8%, up 0.2 percentage points from the same period in 2019. And for the one-week period ending
Homebuyer activity posts an unseasonable mid-summer surge amid pandemic
The number of home tours taken by North American buyers were up 12%, the Redfin homebuyer demand index was up 33%, and pending sales climbed 7% from the same period in 2019.
"The housing market usually slows down in July and August when people take time off for vacations," said
This strength continues despite increasing cases of the coronavirus causing some large states like
As more employers embrace remote work, some homebuyers are reconsidering where they want to live; relocations are fueling a hot housing market in relatively affordable places. "People have realized they can work from home long-term, which has been a boon to
New listings still slow to appear
The number of new homes for sale continues to lag behind 2019. For the four-week period ending
"Listings have started picking up, but it's still slow," said Detroit Redfin agent
Facing fierce competition, buyers pull out the stops
With so much competition for so few homes, homebuyers are employing dramatic measures to make their offers stand out during bidding wars. One of the most effective strategies, according to Redfin agents, is to offer free rent back to the sellers, sometimes for months past the date that the sale closes. A rent-back agreement allows the seller to stay in the house for a period of time after the sale to the new buyer closes, typically to give the seller extra time to find a new home. In a recent survey of about 400 Redfin agents, about one in 10 mentioned that their clients had used this tactic to win a home.
Some homebuyers are employing even more unusual strategies to win bidding wars, like adopting the seller's pet chickens, attaching a letter to connect with the seller's love of jam, and tossing in a jacket signed by the local NHL team; whatever it takes to get an edge.
To view the full report, including charts, outlook and methodology, please visit: https://www.redfin.com/blog/home-sales-and-prices-keep-climbing/
Redfin (www.redfin.com) is a technology-powered residential real estate company, including brokerage, iBuying, mortgage, and title services. Founded by software engineers, we run the country's #1 most-visited brokerage website and offer a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 90 markets in
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the
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