The U.S. median home sale price increased 13% from 2019 to $319,178—the highest on record, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. This 13% year-over-year increase was the largest since October 2013.
Below are other key housing market takeaways for 434 U.S. metro areas during the 4-week period ending September 6.
“Home price growth this high is making the housing market especially difficult for first-time homebuyers right now,” said Redfin chief economist Daryl Fairweather. “Rising prices are just one more reason for people to leave expensive urban neighborhoods behind. The sudden rise of remote work has allowed homebuyers who are priced out of one neighborhood to expand their search to more affordable areas. In turn, they are pushing up home prices in those relatively affordable areas, causing more people to look to even more affordable areas, and so on. Price growth may slow in 2021, but even if it does, high prices are going to continue to make affordability a concern for buyers.”
“I’ve been helping more buyers from out of town lately, mostly from the Bay Area,” said Seattle Redfin agent Christian Cerone. “They’re unfazed by the intensity of the market, since that’s been the norm there for quite a while. We’ve also started to see bidding wars even on homes above $1 million, which were seemingly immune to bidding wars even when the market got really crazy in recent years. With so much wealth coming into the city from more expensive places, there are plenty of buyers right now who have the potential to buy those $1–$2 million homes.”
Redfin agents in areas affected by wildfires report that the smoke is slowing down some home-buying activity.
“Home touring is slowing down in San Francisco due to the fires—people don’t want to go outside with all of the smoke in the air,” said local Redfin agent Gabrielle Bunker. “Some buyers have also started raising concerns about being able to get fire insurance because insurance companies have tightened up their requirements for fire coverage.”
To view the full report, including charts and methodology, please visit: https://www.redfin.com/blog/home-prices-up-13-percent/
Redfin (www.redfin.com) is a technology-powered residential real estate company, redefining real estate in the consumer’s favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we also run the country’s #1 real estate brokerage search site, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 90 markets in the United States and Canada. Since our launch in 2006, we have saved our customers over $800 million and we’ve helped them buy or sell more than 235,000 homes worth more than $115 billion.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email firstname.lastname@example.org.