Home prices have hit a record high as supply has reached a record low. Despite those challenges, there are signs the market continues to shift toward more seasonable norms, according to a new Redfin report.
Redfin chief economist Daryl Fairweather said demand seems to be returning to “a slowdown trend that we’d typically expect to see in the last few weeks of the year.”
“The latest research on the Omicron variant seems to be easing consumers’ worst fears, but a lot of uncertainty remains in the economy — from inflation, jobs and wages to how the Fed reacts to those factors,” he said in a press release. “Amid all that economic uncertainty, the notion that home prices will continue to grow in the near term feels relatively certain.”
November pending home sales dropped to their lowest level since February, according to the report that analyzed data from more than 400 U.S. metro areas during the four-weeks ended Dec. 5.
The median sales price of homes hit an all-time high of $360,250 increasing 14% year over year and up 30% from 2019.
Asking prices also increased, up 11% from last year and 27% from 2019 to $347,500, while pending home sales rose 5% from last year and 49% from 2019.
New listings were down 7% from last year, but up 11% from 2019, while active listings fell to a record low dropping 25% from 2020 and 43% from 2019.
Almost a third of all homes (31%) went under contract with an accepted offer within one week of being listed, up from 26% a year prior, indicating a more typical seasonal decline.
Additionally, the report noted a 5% week-over-week decrease in mortgage applications. Thirty-year mortgage rates were flat at 3.1% for the week ended Dec. 2.