Home prices experienced the largest growth since September 2005 during the four-week period ending October 4. The median home sale price hit $320,625—a 15% year over year increase. Back in fall of 2005, home prices jumped 14.5% year over year, making this fall’s increase the highest in history, according to Redfin. And the sale-to-list price ratio, or how close homes are selling to their asking prices, remained at an all-time high of 99.4%. The median asking price jumped 14% year over year, a nearly 2 percentage point increase from the previous four-week period.
“Large, expensive, luxury homes are taking up a bigger share of the homes that are selling, which is driving a high growth rate for the median sale price,” said Redfin chief economist Daryl Fairweather. “Remote work is increasing demand from affluent people, while middle-income people are more often expected to do their jobs in-person, and many have been affected by furloughs and shutdowns.”
We will continue to track changes in sellers’ asking prices, which tend to precede trends in overall home price growth. Even as sales continue to experience a typical seasonal slowdown, real estate remains firmly in seller’s market territory.