Redfin reports home buying conditions improve slightly as mortgage rates drop


SEATTLE, August 6, 2021 / PRNewswire / – (NASDAQ: RDFN) – At $ 362,750, the median home selling price did not hit a new record for the first time since early March, according to a new report by Redfin (redfin.com), technology-based real estate brokerage. Instead, it was stable (-0.2%) compared to the four-week period ending July 25 and up 18% from the previous year.

Highlights of the housing market for over 400 metropolitan areas in the United States:
Unless otherwise indicated, this data covers the four-week period ending August 1. Redfin’s housing market data goes back to 2012.

  • The median home selling price rose 18% year over year to $ 362,750, but decreased 0.2% from the four-week period ending July 25. This ends a five-month streak of record home prices.
  • Asking prices for newly listed homes increased 12% from the same period a year ago to a median of $ 358,475, but down 1% from their all-time high in the four weeks ending June 27.
  • Pending home sales rose 3%, the smallest year-over-year increase since the end of the four-week period June 28, 2020. They were down 3% from the four weeks ending July 25 and down 12% from their 2021 peak in the four-week period ending May 30.
  • New listings of homes for sale edged down -0.2% from the previous year, the first drop since March. The number of homes listed increased 1.9% from the four weeks ending July 25, a similar trend observed over the past two years during this period.
  • Active listings (the number of homes listed at any time during the period) fell 26% from the same period in 2020, the smallest drop since the end of the four-week period December 27, 2020. Active registrations increased 13% from their low success of 2021 in the four-week period ending March 7.
  • 49.7% of homes under contract had an accepted offer within the first two weeks on the market, well above the rate of 44% during the same period a year ago. The rate has peaked since the end of the four weeks 11 July, but this was the first time it had fallen below 50% since the end of the four week period February 7.
  • 36% of homes that entered into a contract had an offer accepted within a week of entering the market, up from 31.6% in the same period a year earlier. This rate has also peaked for the four weeks ending 11 July.
  • Homes that sold were on the market for a median of 16 days, 20 days more than a year ago and stable since the end of four weeks July 25.
  • 54% of homes sold above the list price, up from 30% a year earlier. This measure is leveling off, reaching 54-55% since the end of the four-week period June 27.
  • At 4.7%, the share of homes for sale with price drops hovered just below 2019 levels (4.9%), exceeding last year’s rate of 3.7%.
  • The average sale-to-list price ratio, which measures how well homes are selling at their asking prices, fell to 102.1%, still slightly below the peak of 102.3% set in the four weeks ending. 4th July. In other words, the average home has sold 2.1% above its asking price. This measure was 3.1 percentage points higher than a year earlier.

Other leading indicators of home buying activity:

  • Mortgage purchase requests during the week ending July 30 fell 1.7% week over week (seasonally adjusted) to their lowest level in May 2020. For the week ending 5 August, 30-year mortgage rates fell to 2.77%, their lowest rate since mid-February.
  • Of January 1 to August 3, home visits were up 14%, up from a 39% increase over the same period last year, according to home visiting technology company ShowTime.
  • The seasonally adjusted Redfin homebuyer demand index – a measure of requests for home visits and other services from Redfin agents – rose 8% month over month.

Trends in home prices, sales and new listings are starting to resemble the patterns Redfin typically expects for this time of year, which is news after a year of unpredictable and insatiable demand for homes. Measures of competition and speed of sale of homes are leveling off – at 54% of homes selling above list price and about half under contract within two weeks – as pending sales decline and more new registrations are on the rise. Mortgage rates fell below 2.8%, a level Redfin had not seen since the winter. If these trends continue, home buying conditions will likely improve (compared to early summer), with more options and less competition for buyers.

“Although homes are much more expensive than they were before the pandemic, homebuyers are now enjoying very low mortgage rates and a little less competition than they were at the start of the pandemic. ‘summer,’ said Redfin’s chief economist. Daryl Nice weather. “This week, a young first-time buyer with an FHA loan got her offer accepted for a house near Myrtle Beach, South Carolina, after losing five bidding wars. I hope more opportunities like this present themselves in the coming weeks if things continue to stabilize. “

To view the full report, including charts and methodology, please visit:

https://www.redfin.com/news/housing-market-update-buying-conditions-improve/

About Redfin
Redfin (www.redfin.com) is a technology-driven real estate company. We help people find housing through brokerage, Instant Home Buyers (iBuying), rentals, loans, title insurance and renovations. We sell houses for more money and charge half the cost. We also run the country # 1 real estate brokerage site. Our homebuying clients see homes with on-demand tours first, and our loan and title services help them close quickly. Customers selling a home can receive an instant cash offer from Redfin or have our home improvement team fix their home to sell it for the best price. Our rental business enables millions of people across the country to find apartments and houses for rent. Since our launch in 2006, we have saved more than $ 1 billion in committee. We serve over 100 markets across the United States and Canada and employs over 6,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn more about housing market trends and download data, visit Redfin Data Center. To be added to Redfin’s press release mailing list, send an email press@redfin.com. To consult the Redfin press center, Click here.

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SOURCE Redfin


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