The seasonally adjusted Redfin Homebuyer Demand Index was up 29% from pre-pandemic levels in January and February. The biggest change from recent weeks is the number of new listings, which were up 4.1% from a year earlier—the strongest gain since March.
However, the number of homes actively listed for sale during the period was still way down (28%) from the same period a year ago. Active listings have been down 20% or more from a year earlier since the four-week period ending
"A lot of the homebuyers I'm working with also have a home they need to sell, but they feel stuck," said
Largest annual increase in pending home sales since
Pending home sales for the four-week period were once again much higher than the same time in 2019, up 20% despite an ongoing seasonal decline over the past few weeks. This was the largest year-over-year increase in pending sales since the four weeks ending
Because growth in homebuying demand (as measured by pending sales, up 20%) continues to dwarf growth in supply (as measured by new listings, up 4%), there seems to be no end in sight to the upward pressure on home prices.
"More new listings are hitting the market than a year ago, but homebuyer demand is outstripping it," said Baltimore Redfin agent
Prices keep pushing higher and higher
Home prices were up 11% from a year earlier for the four-week period ending
The market for homebuyers keeps getting tougher
Buyers in the market today will find homes selling more quickly and closer to list price than ever before. Of homes that went under contract during the four weeks ending
"This market is really squeezing first-time homebuyers at lower price points pretty hard," added Maller.
"Many homebuyers are waiving home inspections, appraisals and everything they possibly can to try to win in a bidding war," continued Killham. "The busy season for real estate seems to be prolonged this year. Usually things have slowed down by now, but homes are still flying off the market, sometimes before you can even see the properties."
The average sale-to-list price ratio increased again to a new record high of 99.2%—meaning homes are selling closer than ever to their list price—up from 98.3% during the same period last year. Year-over-year changes of nearly a full percentage point in this measure are very rare—last seen in early 2013 as the housing market was finally bouncing off the post-recession bottom.
The housing market seems invincible right now
"It seems like nothing can stop the housing market from charging forward with rising prices and increasing sales right now," said Redfin chief economist
On Thursday the Fed officially confirmed their strategy that will hold rates low for a long time. This is likely to mean that mortgage rates around 3% are the "new normal," and will continue to drive the housing market through at least the end of the year.
To view the full report, including charts and methodology, please visit: https://www.redfin.com/blog/housing-market-posts-more-strong-gains/
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