For the four week period ending August 30, the housing industry saw more record breaking median home price increases and home inventory shortages. Active listings dropped by 28% from last year, a new all-time low, says Redfin. In addition, median home sale prices jumped 12% compared to last year, making it the highest increase on record. The median home sale price is now $318,473. Nearly all of Redfin’s listings were accepted just at asking price, making the average sale-to-list price ratio 99.2%, another all-time high. Pending sales grew by 21% year over year during the four-week period. One Boise, Idaho Redfin agent described the intense demand mixed with low inventory as “a complete storm of insanity,” as buyers enter the market from other states.
New listings of homes for sale were up 7% from a year ago—the largest increase since the four weeks ending September 23, 2018. During just the last week of the period, new listings were up 11% from the same week a year earlier.
“Rising home values are becoming a bigger and bigger reason some homeowners are deciding to sell and cash-in,” said Redfin chief economist Daryl Fairweather. “But so far the increase in new listings is still far outpaced by gains in demand from buyers as measured by pending sales.”
“Demand has been high, but we’re down to a record-low number of homes for sale, which has created a complete storm of insanity,” said Boise Redfin agent Kristin Lopez. “The majority of my recent buyers have been people moving here from out of state: California, Washington and Oregon. I’ve done 10 sight-unseen offers for these buyers in just the past couple of months. They are purchasing primary residences and are moving here to stay.”