It appears as though we’re set to see some record numbers continue in terms of the May 2021 real estate wraps, and this morning, Redfin is giving the first glimpse of what’s to come.
For the four week period ending May 23, a record high of 51 percent of homes across 400+ U.S. metro areas sold for more than their list price—up 26 percent from the same period a year earlier. Additionally, May saw a record-high 101.9 percent average sale-to-list price ratio, which measures how close homes are selling to their asking prices, up 3.4 percentage points year over year. In other words, the average home sold for 1.9 percent more than its asking price.
Also interesting to note that May saw a record low of 17 days on market for homes that sold during the period, down from 36 days from the same period in 2020.
“We are seeing a typical late-spring slowdown in new listings and pending sales” said Redfin Chief Economist Daryl Fairweather. “However, prices don’t typically peak until late August, and their growth remains completely unhinged. The fact that homes keep selling for more and more above asking prices goes to show that many more people want a home than there are homes for sale. I don’t see that changing until mortgage rates increase, which will likely happen later this year. But until then, the housing market will remain red-hot.”