Real estate market conditions continue to reach new extremes. Redfin said the median home sales price rose 17% year over year to a record $ 338,225 for the four week period ending April 4. Active listings fell to a new low of 514,797, a 42% decrease from 889,828 year over year.
With so many consumers battling for so little available property, units sold in an average of 25 days – the fastest price ever – up from 40 days last year. In addition, 46% of the properties were signed within a week and 59% within two weeks. Both are new records.
This frenzied activity brought average value for money to an all-time high of 100.5% over a four-week period, rising from 98.5% annually. In the four weeks up to March 7th, the rate was 100% for the first time. A share of 42% of the houses sold was above the list price, compared to 26% in the previous year.
While the property market is more competitive than ever, some indicators suggest that demand and property prices may be "nearing a peak," according to Redfin Chief Economist Daryl Fairweather.
Redfin 's homebuyer demand index, which is based on requests for home tours and other services and starts with a base value of 100, rose 147% year over year to 162 from 66 when the pandemic first broke out. However, the index fell 2.2% weekly. New registrations rose 5% annually from 77,470 to 81,185, Redfin said, reflecting a focus on more construction and projected inventory growth for the remainder of 2021.
"Seller asking prices may gradually flatten out, which so far seems to be following a typical seasonal pattern," said Fairweather. “And the decline in mortgage purchase requests tells me that some buyers are pulling out for sale due to the lack of affordable properties. If these trends continue, we can feel more confident that we are not in the midst of runaway property price speculation or a property bubble. "