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New Housing Market Records Set for Prices, Competition and SpeedSEATTLE, May 7, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — A record high 21% year-over-year growth rate in the median home-sale price hit $348,500, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. One contributing factor to the large rate of growth is that more high-end homes are being sold now than a year ago. Asking prices reached an all-time high of $360,975. Below are other key housing market takeaways for more than 400 U.S. metro areas during the 4-week period ending May 2 (unless otherwise noted). Note that at this time last year, pandemic stay-at-home orders halted homebuying and selling, which makes year-over-year comparisons unreliable for select housing metrics. As such, Redfin has broken this report into two sections: metrics that are OK to compare to the same period in 2020, and metrics for which it makes more sense to compare to the same period in 2019. Metrics to compare to 2020:
Mortgage purchase applications decreased 3% week over week (seasonally adjusted). For the week ending April 29, 30-year mortgage rates decreased slightly to 2.96%. "Right now we are seeing a substantial increase in home prices, which could be a precursor to more widespread inflation throughout the economy," said Redfin Chief Economist Daryl Fairweather. "Lumber prices are surging, which has driven up prices of new homes and indirectly drives up prices of existing homes. As states lift their pandemic restrictions, we will likely see more shortages and price increases on everything from gasoline to hotel stays and food. These price increases will likely be short-lived, but could cut into homebuyers' budgets and ease competition enough for the housing market to become more balanced. A more balanced market could encourage more move-up homeowners to finally sell, because they won't be so fearful about being able to find and compete for a home to buy." To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-home-prices-up-21-pct/ About Redfin 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 [email protected]. To view Redfin's press center, click here. View original content to download multimedia:http://www.prnewswire.com/news-releases/new-housing-market-records-set-for-prices-competition-and-speed-301286418.html SOURCE Redfin |