Active listings were the only key housing market measurement that decreased during the four-week period ending September 13. Compared to this time last year, the number of active listings is 28% less, but home prices, sale-to-list price ratio, pending sales and homebuyer demand increased. Home prices are now up 13% compared to 2019, which Redfin says is the highest increase and median home price on record. Despite the advancing prices, pending home sales jumped by 27% year over year. More of these homes are selling at asking price as well, with the sale-to-list price ratio hitting 99.3%.
“Seasonality is going to become more noticeable now that schools have started and Labor Day is over,” said Redfin lead economist Taylor Marr. “There is still a lot of room for more homes for sale to hit the market to make up for lost ground during the pandemic. This increase in supply is likely to drive more strong year-over-year growth in home sales. Leading indicators of home sales like mortgage applications and pending sales are still showing tremendous strength as we head into fall.”
Redfin agents in areas affected by wildfires report that wildfire risk and smoke is impacting the market, at least a little.
“We do have some homebuyers who are rethinking whether or not they want to purchase in an area that is prone to wildfires,” said San Francisco Redfin agent Tom Baumgartner. “It’s too early to tell if there will be a long-term impact. The smoke right now has definitely been a factor when we’re prepping properties to sell. We’re dealing with a lot of ash, outdoor surfaces are covered and that requires some extra cleanup, like power washing.”