Prices Rise, Listings Fall
Usually, what goes up must come down. However, currently, in real estate markets around the country, it is what goes down the other must go up. Of course, we are talking about the inverse relationship between home prices and inventory.
Redfin’s latest housing data shows listings continue to fall while prices continue to skyrocket (Redfin)
– Asking prices of newly listed homes hit a new all-time high of $343,961. This is an 11% jump from the same time a year ago.
– New listings of homes for sale were down 17% from a year earlier. In fact, active listings fell a drastic 40% from 2020.
– With no inventory when a house hits the market, it is not there for long. 43% of homes that went under contract had an accepted offer within one week of hitting the market. This is up 30% from February 2020.
Redfin’s data matches up with the weekly data provided by Realtor.com
– Median listing prices were up 14.5% from last year. This is the 28th consecutive week of double-digit price growth.
– New listings dropped 35% compared to the same time a year ago and total active inventory was down 49%
A lot of people are worried that rising mortgage rates could cool the housing market off. However, looking at the growing prices and shrinking inventory every week, a little cooling might not be a bad thing.