While the number of homes for sale fell to a record low, the median home sale price rose 14.6% year-over-year. A new all-time high of $361,171 was hit in the four-week period ending December 26, according to a new report Redfin.
New listings and pending sales both fell to their lowest levels since January 2021, and touring activity declined from comparable periods in 2019 and 2020.
“The holiday effect of buyers and sellers diverting their time and attention to travel and celebrations has been even more extreme than during the pre-pandemic Christmas week of 2019,” said the Deputy Chief Economist of Redfin, Taylor Marr.
More than 400 U.S. metro areas surveyed in various housing markets reflected percentage increases. The median asking price for newly listed homes rose 12.9% year-on-year to $345,348, up 28.7% from 2019. Pending home sales rose 4.2% year-over-year. year over year and 55.2% compared to the same period in 2019. down 6.4% compared to the previous year, but up 15.6% compared to 2019.
Active listings fell 26.1% to an all-time low and were down 44.8% from 2019. The share of homes under contract that had an accepted offer in the first two weeks on the market was 40.3%, above last year’s rate of 35%.
Some 29.6% of homes under contract had an offer accepted within a week of listing, up from 25.3% over the same period. Homes sold were on the market for a median of 26 days.
On average, 42.1% of homes sold above list price, down from 33.6% a year earlier, while 2.8% of homes for sale each week saw a price drop, up 0 .5 percentage points from the same period in 2020. Aside from a slight percentage decline, the average sale-to-list price ratio was 100.4%. This resulted in homes being sold 0.4% above the asking price. The Redfin homebuyer demand index also rose 17% from a year earlier.
Other leading indicators of home buying activity include mortgage purchase applications down 3% week-over-week for the period ending Dec. 23.
“We see this slowdown as a temporary consequence of the holidays, not an indication that demand from home buyers is waning. Those who bought homes during the holidays paid high prices due to the continued shortage of supply. “Marr said.
For the week ending December 23, 30-year mortgage rates fell to 3.05%. Touring activity through Dec. 26 was 8.7 percentage points from 2019 and 8.5 percentage points from 2020 from the first week of January, according to the home visitation technology company Display time.
To view the full report, including charts and methodology, Click here.