New listings of homes for sale jumped by 6% compared to last year during the four-week period ending September 20 thanks to more sellers feeling secure in listing their homes, yet it still barely helps to relieve demand. In the same four-week period, home prices jumped by 14% year over year, according to Redfin. Since the ending of June and beginning of July, home prices have increased by 6.6%. In the past two years, home prices typically fell during this time. Active listings are still dramatically low, even hitting a new low of 28% less during the past four weeks.
“The recent boost in the number of people listing their homes for sale still falls far short of demand from folks looking to buy homes right now,” said Redfin chief economist Daryl Fairweather. “Unfortunately, that means little relief for homebuyers, especially those seeking an affordable home. I don’t expect the double-digit home-price increases to subside before early 2021.”
Even though we’re in a historic seller’s market, it remains critical that sellers price their homes right, according to Washington, D.C. Redfin listing agent Mary Bazargan.
“Some sellers think that because inventory is low and houses are selling quickly, they can afford to overprice their home,” explained Bazargan. “When we price a new listing conservatively, we’re getting multiple offers and those homes are often selling above list price, but if we push the price aggressively high, the home tends to sit on the market for a while and won’t get multiple offers.”