According to a new report from Redfin, which includes data regarding November home sales, the typical home sold last month only spent about 27 days on the market. This is 18 days less than it took for homes to sell at the same time last year. It is also a new all-time low since the Redfin’s began recording home sales data eight years ago.
This a clear sign that the housing market is heating up, but homes weren’t just selling faster last month. They were also selling at higher prices. In November, 35% of homes sold above their list price, which is a new high. The median home price rose to $335,519, a 14% year-over-year increase, and the second-largest increase annual increase in home prices recorded by Redfin since 2012.
According to Redfin, the median prices soared in all 85 largest metro areas that Redfin tracks. San Francisco, which increased by only 1.8%, had the smallest increase in home prices compared to last year. The largest price gains were in Bridgeport, CT, which had home prices that increased by 22% since last year. Newark, NJ (+22%) and Memphis, TN (+20%) came in second and third place, respectively, in terms of the largest median price growth since last year.
Meanwhile, closed home sales in November rose by 23% from 2019, and pending sales increased by 37%. New listings only had a slight increase of 8%. This strongly indicates that the demand for homes is far surpassing the supply of homes on the market.
In fact, November’s active listings, which is the count of all homes that were for sale at any time last month, dropped by 23% since last year. This is the lowest level of active listings on Redfin’s record. This sharp decrease in listings also makes November the 16th-straight month of declines.
Less time spent on the market and more homes selling above the listing price are clear signs that competition in the housing market is booming. With mortgage rates reaching new lows, the high demand for homes is likely not going away for a while. It may be a long road ahead before competition for homes eases.