Redfin reports higher mortgage rates heighten buyers’ urgency

SEATTLE, November 5, 2021 / PRNewswire / – (NASDAQ: RDFN) – Home prices have increased unusually and rapid sales became more common in October, according to a new report by Redfin (redfin.com), technology-based real estate brokerage. The national median selling price during the four week period ending October 31 increased 13% from the same period last year and 1.5% from three weeks earlier. This compares to an increase of 0.1% from the same period in 2019.

Mortgage rates edged down last week, but are up 30 basis points since August and the share of homes sold in a week has risen to 33%, up 2.2 percentage points since September 12. During the same period in 2019, the share of homes sold in one week fell by 1.2 points.

“Rising mortgage rates have started a fire under many buyers,” said Redfin chief economist Daryl Nice weather. “The fear of missing out (FOMO) is still a powerful force in this supply-constrained housing market, but especially today for buyers who haven’t been able to own a home last year before. that mortgage payments increase by 15%. With this FOMO renewal, the housing market is heating up after the slight lull of a few months ago. “

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 October 31. Redfin’s housing market data goes back to 2012.

  • The median home selling price rose 13% year over year to $ 357,007. This is an increase of 30% from the same period in 2019 and 1.5% since the end of the four week period. October 10. During the same period in 2019, prices were essentially stable (+ 0.1%) and in 2020 house prices increased by 0.4%.
  • Asking prices for newly listed homes increased 12% from the same period a year ago and 27% from 2019 to reach a median of $ 357,381.
  • Pending home sales increased 5% year-on-year and 51% compared to the same period in 2019.
  • New listings of homes for sale were down 7% from the previous year, but up 8% from 2019.
  • Active listings (the number of homes listed for sale at any time during the period) decreased 22% from 2020 and 40% from 2019.
  • 45% of homes under contract had an accepted offer within the first two weeks on the market, above the rate of 41% a year earlier and the rate of 30% in 2019. Since the end of the four-year period weeks September 19, the share of homes under contract within two weeks is up 1.6 percentage points. During the same period in 2019, the share fell by 1.2 points.
  • 33% of houses that entered into a contract had an offer accepted within a week of entering the market, compared to 29% during the same period a year earlier and 19% in 2019. Since the end of the period of four weeks September 12, the share of housing under contract in less than a week is up 2.6 percentage points. During the same period in 2019, the share fell by 1.2 points.
  • Homes sold were on the market for a median of 23 days, a full week longer than the historic 16-day low seen in late June and July, down from 31 days a year earlier and 45 days in 2019.
  • 45% of homes sold above the list price, up from 35% a year earlier and 22% in 2019.
  • On average, 4.7% of homes for sale each week saw price decline, up 1.1 percentage points from the same period in 2020, up 0.1 percentage point from 2019.
  • The average sale-to-list price ratio, which measures how well homes are selling for their asking prices, was stable at 100.6%. In other words, the average home has sold 0.6% above its asking price.

Other leading indicators of home buying activity:

  • Mortgage purchase requests fell 2% week-over-week (seasonally adjusted) in the week ending 29 october. For the week ending November 4, 30-year mortgage rates fell to 3.09%.
  • Of January 1 to October 31, home visits rose 0.2%, up from a 9% increase from the same period last year, but larger than the -2% change in 2019, according to the visiting technology company at ShowTime home.
  • Redfin homebuyers demand index fell 2.2 points in the week ending October 31, and was up 14% from the previous year.

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-higher-rates-boost-buyer-urgency/

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 manage the first real estate brokerage site in the country. 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 [email protected]. To consult the Redfin press center, Click here.

SOURCE Redfin

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