Homes Sold in November Went Off Market at the Fastest Pace in At Least 8 Years
12/17/2020 - 08:00 AM
SEATTLE , Dec. 17, 2020 /PRNewswire/ -- (NASDAQ: RDFN) — The national median home price rose 14.0% year over year to $335,519 new report www.redfin.com 14.5% gain in July 2013 . These near-record gains are fueled by an extreme imbalance between homebuying demand and the supply of homes for sale. Closed home sales surged 23% from a year earlier, and pending sales were up 37% , while new listings were up just 8% .
The housing market set multiple records in November for time on market, the share of homes sold above list price and the number of homes for sale. The rate of home price and sales growth are also both near their all-time highs, suggesting that November may be the hottest housing market on record.
"Neither the election nor the Thanksgiving holiday weekend curbed homebuyers' appetite in November," said Redfin chief economist Daryl Fairweather . "I personally bought a home last month because I knew if I didn't seal the deal by then, I would have to wait until January for more new listings to hit the market to find one that checked all of my boxes. Plus, there is no guarantee mortgage rates will stay this low for much longer. And like most buyers this time of year, once I had it in my head that it was time to move, I wanted to be settled in my new home in time for the holidays."
Median home prices increased in each of the 85 largest metro areas Redfin tracks. The smallest price gains compared to a year earlier were in San Francisco (+1.8% ), while the largest price increases were in Bridgeport, CT (+22% ), Newark, NJ (+22% ) and Memphis, TN (+20% ). Nationally, home price increases leveled off in November close to the all-time high.
This is the second month in a row that the Bridgeport and Newark areas have seen the largest price gains in the nation as they continue to see an influx of newly work-from-home buyers moving from New York City in search of more space.
Market Summary
November 2020
Month-Over-Month
Year-Over-Year
Median sale price
$335,500
0.2%
14.0%
Homes sold, seasonally-adjusted
668,000
0.8%
23.2%
Pending sales, seasonally-adjusted
628,800
2.8%
36.6%
New listings, seasonally-adjusted
657,800
-4.3%
8.0%
All Homes for sale, seasonally-adjusted
1,639,300
-2.1%
-23.1%
Median days on market
27
-1
-18
Months of supply
1.6
0
-1.5
Sold above list
34.9%
0.1 pts†
13.6 pts†
Median Off-Market Redfin Estimate
$319,600
-1.4%
10.0%
Average Sale-to-list
99.5%
0.0 pts†
1.4 pts†
Average 30-year fixed mortgage rate
2.77%
-0.06 pts†
-0.93 pts†
† - "pts" = percentage point change
Home sales were up 23% in November from a year earlier on a seasonally-adjusted basis, down slightly from the record high of 25% set in October.
The number of homes sold in November was up from a year earlier in all but one of the 85 largest metro areas Redfin tracks. The largest gains in sales were in Bridgeport, CT (+65% ), Lake County, IL (+45% ) and Elgin, IL (+44% ). The only market that saw a decrease in the number of homes sold was Honolulu (-0.8% ).
Active listings—the count of all homes that were for sale at any time during the month—fell 23% year over year to their lowest level on record in November, the 16th-straight month of declines.
Only two 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: San Francisco (+72% ) and New York City (+32% ). The number of homes for sale continued to build up in these markets as growth in new listings (53% and 37% year over year, respectively) dwarfs increases in home sales (+23% and +21% ).
Compared to a year ago, the biggest declines in active housing supply in November were in Kansas City, MO (-50% ), Salt Lake City (-54% ) and Elgin, IL (+45% ).
The number of new listings of homes for sale increased 8% in November from a year earlier, a slight dip from the seven-year high in October. Increases in new listings are still being heavily outpaced by increases in pending sales, which were up 37% year over year in November.
Measures of competition such as time on market and the share of homes sold above list price hit new records in November as they continued to run against the typical seasonal trend. The typical home that sold in November went under contract in 27 days—18 days less than a year earlier—a new all-time low since the beginning of Redfin's data in 2012.
Typically during the last few months of the year, homes spend more time on the market and the share of homes that sell above list price declines. This year, the ongoing pandemic and recession has thrown the housing market into disarray, completely upending the typical seasonal trends.
In November, 35% of homes sold above list price—the highest level in Redfin's data, which goes back through 2012—up from 21% a year earlier.
To read the full report, including charts and additional metro-level data highlights, please visit: https://www.redfin.com/news/november-housing-market-update-14-pct/
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SOURCE Redfin
