Housing Market Update: Home Prices Up 13%, Pending Sales Rise 38%

Housing Market Update: Home Prices Up 13%, Pending Sales Rise 38%

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Updated on October 26th, 2022

New listings were up just 7% and total active listings were down 32% from 2020.

Key housing market takeaways for 400+ U.S. metro areas during the 4-week period ending January 3:

  • The median home sale price increased 13% year over year to $319,000.
  • Pending home sales were up 38% year over year.
  • New listings of homes for sale were up 7% from a year earlier—the smallest increase since July.
  • Active listings (the number of homes listed for sale at any point during the period) fell 32% from 2020 to a new all-time low.
  • 38% of homes that went under contract had an accepted offer within the first two weeks on the market, well above the 25% rate during the same period a year ago.
  • The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, declined slightly to 99.3%—still 1.5 percentage points higher than a year earlier.
  • For the week ending January 3, the seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other services from Redfin agents—was up 32% from pre-pandemic levels in January and February of 2020.
  • For the week ending January 7, 30-year mortgage rates fell to another new record low of 2.65%.

“The economy faces new challenges in the next few weeks, which are likely to see continued political instability and rising coronavirus cases,” said Redfin chief economist Daryl Fairweather. “Still, it’s unlikely that either will have a meaningful or long-term impact on homebuying demand, which, already extremely strong, is now bolstered by even lower mortgage rates. Migration and progressive economic policies will shape the housing market in the months to come. The recent migration of Americans to affordable places like AtlantaPhoenix and suburbs across the country has contributed to what will be a major change in fiscal and economic policy starting on January 20. While more government spending could lead to moderate mortgage-rate increases, it will also likely include programs to make homeownership affordable to more people.” 

Home Sale Prices Up 13% to Start 2021

Pending Sales Up 38% From a Year Earlier

New Listings of Homes Up 7% From Last Year

Active Listings of Homes For Sale Down 32% From 2020

38% of Pending Sales Under Contract Within Two Weeks

Sale-to-List Price Ratio Declined to 99.3%

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Tim Ellis

Tim Ellis has been analyzing the real estate market since 2005, and worked at Redfin as a housing market analyst from 2010 through 2013 and again starting in 2018. In his free time, he runs the independently-operated Seattle-area real estate website Seattle Bubble, and produces the "Dispatches from the Multiverse" improvised comedy sci-fi podcast.

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