When browsing available homes in the market, many consumers simply focus on the tax value or list price as a determination of value. Ultimately a property is worth whatever a potential buyer is willing to pay for it. Multiple competing offers over list price are a natural form of price discovery within the real estate market. By carefully observing this data, it allows us as brokers to better analyze current trends and subsequently provide our clients value with the most up to date counsel based on accurate data points. However, new data is supporting the claims we've been making to our clients for quite some time now: Homes, more often than not, are selling for over list price within our market. Highlights from a recent market report published by Redfin are outlined below, which shed additional light on the current broad trends across the U.S. real estate market.
The average sale-to-list price ratio climbed to a record high 101.5% as 49% of homes sold above list price, also a record high.
Key housing market takeaways for 400+ U.S. metro areas:
Unless otherwise noted, this data covers the four-week period ending May 9.
Note: At this time last year, pandemic stay-at-home orders halted homebuying and selling, which makes year-over-year comparisons unreliable for select housing metrics. As such, we have broken this report into two sections: metrics for which a year-over-year comparison remains most relevant, and metrics for which it makes more sense to compare to the same period in 2019.
Metrics to compare to 2020:
Each of the metrics highlighted in the following list set a new housing record going back at least as far as 2012, when Redfin’s data began.
Home prices hit a record high of $350,750 and were up 22% year-over-year, also a record.
Asking prices dipped slightly to $358,527.
A record low of just 18 days on market for homes that sold during the period, down 17 days from the same period in 2020.
A record high of 49% of homes sold for more than their list price, up 21 percentage points from the same period a year earlier.
A record-high 101.5% average sale-to-list price ratio, which measures how close homes are selling to their asking prices, up 2.9 percentage points year over year. This means that the average home sold for 1.5% more than its asking price.
A record-high 58% of homes that went under contract had an accepted offer within the first two weeks on the market.
A record-high 45% of homes that went under contract had an accepted offer within one week of hitting the market.
Metrics to compare to 2019:
Pending home sales were up 25% from the same period in 2019.
New listings of homes for sale were down 9% from the same period in 2019. Compared to the four-week period ending April 11, new listings were up 4%, slightly larger than the 2% increase during the same period in 2019. Although new listings are still in short supply, they are following a typical seasonal pattern and showing slightly more growth than in 2019.
Active listings (the number of homes listed for sale at any point during the period) fell 48% from the same period in 2019.
Mortgage purchase applications increased 1% week over week (seasonally adjusted). For the week ending May 13, 30-year mortgage rates decreased slightly to 2.94%.
So what does this all mean? There is really no indication of things slowing down anytime soon in our real estate market. All indicators are pointing to increasing demand coupled with lower supply of available resale and new construction homes. This means having an experienced team of agents to guide and advise you through these challenging times is more important than ever. Understanding the nuances of our local market allows us at Jason Dalton & Associates to craft strong offers for our clients to help them achieve their real estate goals, as well as strategize on how to best help our clients sell their current homes while maximizing their financial gains.
Are you or someone you know interested in finding out more about what their current home may be worth? Or perhaps considering investing in the Triangle real estate market? Referrals are the foundation of our business and trusting us with the opportunity to serve as your trusted real estate professional is the highest compliment we could receive. Contact us at Jason Dalton & Associates today and we will connect you with one of our expert brokers for a fully personalized real estate consultation.