Over Half of U.S. Homes Sold in May Were Above List Price

First time on record says Redfin

National property broker Redfin is reporting this week that the national median home-sale price in the U.S. hit a record high of $377,200 in May 2021, up a record 26% year over year.

The housing market also set new records for home-selling speeds and competition, but seasonally adjusted home sales and new listings flattened from April. Leading indicators of housing market activity are also declining into June, according to the latest weekly data, signaling that the pace of the market may be slowing.

“May marked the likely peak of the blazing hot pandemic housing market, as many buyers and sellers are vaccinated and returning to pre-pandemic spending patterns,” said Redfin Lead Economist Taylor Marr. “Sellers are still squarely in the drivers’ seat, but buyers have hit a limit on their willingness to pay. The affordability boost from low mortgage rates has been offset by high home price growth.”

Only seven of the 85 largest metros tracked by Redfin posted a year-over-year increase in the number of seasonally adjusted active listings of homes for sale. Philadelphia (+14%), New York (+13%) and San Francisco (+12%) experienced the biggest gains, all areas that saw a more abrupt decline in listings a year ago.

Although sales slowed slightly, the housing market was once again more competitive in May than any time since Redfin began tracking national housing data in 2012. The typical home that sold in May went under contract in 16 days–less than half as much time as a year earlier, when homes sold in a median 38 days.

The average sale-to-list price ratio continued to surge in May, hitting a record high of 102.2%. This measure typically peaks in June, so the market is likely to post an additional record high this month.

Read the full article:World Property Journal