Almost exactly two years ago, on March 11, 2020, the World Health Organization officially declared the COVID-19 outbreak a global pandemic. Since then, the housing market has followed a rollercoaster of dramatic price changes, supply deficits, and steadfast demand. The number of homes currently listed for sale on the market is down 49.9% from two years ago to a record low of roughly 456,000, Redfin reports.
Not only is supply down at an all-time low, but affordability also saw a major drop-off after the start of the pandemic. The median home sale price is up to $369,125, the highest ever recorded and a sharp 33.6% increase from $276,225 two years ago.
Homebuyers are now twice as likely to pay above the asking price as they strive to beat out the competition, which is one reason home prices have climbed so high. Nationwide, 46.3% of homes sell for more than the asking price, up from 21.8% two years ago. Some bidders are paying significant premiums to win. Nearly 6,000 homes have sold for $100,000 or more over asking price so far this year, up from 2,241 during the same period last year, a recent Redfin analysis found.