In the first month of the year, the nation’s home-sale prices increased by 6.7% from 2019 levels, coming in at a median of $306,400, according to Redfin.
Of the 85 largest housing markets tracked by real estate search site Redfin.com, only three saw a year-over-year decline in the median sale price in January, including San Jose, California; Baton Rouge, Lousiana; and Greenville, South Carolina, which dropped 4.3%, 4.1%, and 1.4%, respectively.
During the month, home sales increased by 6.7% year over year, marking the sixth consecutive month of increases. Despite this gain, sales were still down 1.1% from December on a seasonally adjusted basis and homes spent two fewer days on the market than they did in 2018. This decline is attributed to the nation’s lack of housing inventory, which is causing a crunch in housing markets across the country, even in the nation’s most expensive coastal cities.
In January, the active listings of homes for sale fell 11.4% year over year, marking the biggest drop since March 2013 and the sixth consecutive month of declines. Not only were there fewer homes available for sale than any time since January 2013 but also none of the 85 largest metros tracked by Redfin posted a year-over-year increase in the count of seasonally adjusted active listings of homes for sale, according to the company. This has led to an uptick in bidding wars for desirable and properly priced properties, benefiting American home sellers.
Typically, we don’t see this many buyers in until March, however mortgage rates back near historic lows are bringing enough of early-spring buyers hoping to secure a home and lock in what could be a once-in-a-lifetime mortgage payment. Home sellers, on the other hand, can clearly see that the market is heating up and have no reason to rush to list their homes, or if they are already listed, make price cuts in order to secure a sale.
Throughout January, the share of homes nationwide that sold above list price increased 1.1 percentage point year over year, coming in at 18.7% compared to 17.6% a year earlier. Below is a look at the current List Price vs Sale Price for the Greater Phoenix Metropolitan Area.