(Noted News) — US homes are selling faster than ever despite rising mortgage rates and prices being more expensive than ever before.
According to a new report from real estate brokerage Redfin, 59% of homes that have been mortgaged this year completed their contract within 2 weeks of being for sale, which is an all-time high since they started keeping track of this data in 2012.
In the third week of March, 61% of homes sold were bought in less than two weeks, and 47% of that went under contract did so in one week. This amounts to a 33% surge from 2020. 40% of all homes were sold above their asking price, which is another all-time high and a 16% increase from last year, according to Redfin.
Adding to the frenzy is the massive decline in the supply of US homes. Redfin found that there were 48% fewer homes on the market this year than at the same time in 2020.
According to Redfin, the most competitive real estate markets in the US, from number 1 to number 10 are:
- Littleton, CO
- Tacoma, WA
- Aurora, CO
- Sacramento, CA
- Spokane, WA
- Colorado Springs, CO
- Grand Rapids, MI
- Omaha, NE
- Richmond, VA
- San Jose, CA
The top ten metro areas with the fastest-growing sale prices are:
- Nampa, ID 39.5%
- Austin, TX 38.2%
- Boise, ID 36.2%
- Spokane, WA 34.6%
- Buckeye, AZ 34.0%
- Delray Beach, FL 34.0%
- Salt Lake City, UT 33.8%
- Chandler, AZ 30.5%
- Meridian, ID 30.4%
- Tulsa, OK 30.3%.2%
Redfin also revealed the current median price of US homes, up 22.2% from last year.
“The direction and pace at which home prices are changing are indicators of the strength of the housing market and whether homes are becoming more or less affordable. The median price of a home in the United States is currently $370,528.”
Redfin’s chief economist Daryl Fairweather says that President Biden’s infrastructure initiatives could widen the supply of new homes and subsequently lower the demand and price of existing homes.
“Looking ahead, Biden’s infrastructure plan aims to incentivize zoning for multi-family homes, which could increase the supply of affordable homes and provide even more people a path to homeownership.”
However, “there is no guarantee the incentives would be enough for local governments to change their zoning practices,” he said.
“Year-over-year comparisons may more reflect the fact that this time last year, stay-at-home-orders halted both home-buying and selling activity,” the brokerage noted.