Median home prices reached an all-time high of $359,975 at the end of a four-week period ending on November 21, a 14% year-over-year increase driven by limited supply and rising inflation. Higher home prices benefit sellers and suggest quick turnover with available homes lasting an average of 24 days on the market and 32% of homes under contract accepting an offer after just one week, according to Forbes.
Sellers are also receiving more offers above asking price as a result of tighter competition in a market with low inventory. Over the past month, the average home sold for 0.5% above its list price, a motivating factor for new sellers entering the market.
Prices have risen in the past month nearly four times faster than they did at the same time last year. The unseasonable surge in home prices appears to be drawing in more sellers, as the number of homes lsted for sale was down less than 3% from 2020 and up 11% from 2019.
“Rising rents and rising prices on everything from gas to groceries may be motivating more people to buy homes now,” said Redfin chief economist Daryl Fairweather. “Buying a home is a type of hedge against inflation, especially with mortgage rates still near historic lows. If high inflation persists, a large home mortgage could seem a lot less expensive in just a few years.”