The median home price rose to another all-time high of $363,975 during the final week of February, a 16% year-over-year gain driving up competition in regional markets across the U.S., Redfin reports. A lack of housing inventory caused the typical home to sell for 0.8% above list price, the largest premium since October, and 58% of homes that went under contract had an accepted offer within the first two weeks on the market.
The number of active listings fell to an all-time low of 456,000, down 24% year-over-year and 50% from the same period in 2020. Unless substantial inventory is added to a picked-over housing market, prices will continue to surge in major metros, heating up competition and pricing more Americans out of homeownership.
Intense competition among buyers driven by an extreme shortage of homes for sale is driving prices up unseasonably fast.
“The war in Ukraine has rattled the global economy, causing mortgage rates to fall after weeks of increases,” said Redfin Deputy Chief Economist Taylor Marr. “The dip in mortgage rates should buoy homebuying demand temporarily, fueling continued price gains. But demand may drop off if the Federal Reserve raises interest rates again as expected.”
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