Homes sold above list price hit a record high

by Liz Hughes

A record number of homes sold above the asking price last month as home sale prices hit an all-time high.

Market data Redfin obtained from more than 400 U.S. metro areas during four weeks ending March 21 found 39% of homes sold above list price, up 15% from the same period last year. Active listings during that same period fell to an all-time low — 42% from 2020, as inventory remains tight. The report also found median home sale prices increased 16% from the same time last year to an all-time record high of $331,590. The report did note that year-over-year comparisons may reflect the stay-at-home orders in effect in March 2020. 

Newly listed home asking prices were flat from the previous four-week period and up 11% from the same time last year, according to the report. Pending home sales were also up — 28% year over year — while new home listings were down 12% from the year prior. 

“It’s concerning how much home prices have risen during the pandemic,” Redfin Chief Economist Daryl Fairweather said in a press release. “When the pandemic is over, purchasing a home is going to cost much more than ever before, putting homeownership much further out of reach for many Americans.”

The report also found the percentage of homes under contract accepting an offer within one week of hitting the market was 58%, up from 33% during the same period last year. During the seven-day period ending March 21, 48% of homes sold in one week or less. 

Additionally, the average sale-to-list price ratio increased to 100.2%, also an all-time high, and 1.9% higher than a year earlier. 

Mortgage applications also had an increase of 3% week over week, up 26% from a year earlier for the week ending March 19. Thirty-year mortgage rates increased 3.17% for the week ending March 25, the highest level since June.

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