10 housing market records set in 2021
The coronavirus pandemic and the resulting increase in remote working have changed where, when, why and how people buy homes, according to a new report from Redfin, the technology-based real estate brokerage. Last year, home selling prices hit an all-time high median, the number of homes for sale fell to an all-time high, demand for second homes was record high and many market records were high. housing were beaten.
âThe ongoing pandemic, including its seismic effect on the US economy and the way Americans live and work, has made the 2021 housing market anything but typical,â said Redfin’s chief economist. Daryl fairweather. âRemote working, low mortgage rates, a shortage of building materials and wealth inequalities that have allowed an influx of affluent Americans to purchase vacation homes, to name a few factors, have come together to create a historic year for real estate. Buyers paid more for homes, bought earlier than expected, searched outside of their hometown, or all of the above. This year’s frenetic housing market has been one for the books, but it could become more balanced in 2022. “
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Redfin has created 10 charts that illustrate the records set for the 2021 housing market, available in full report and summarized below.
Record # 1: Typical American Home Sold For Nearly $ 400,000
The national median selling price of homes has reached $ 386,000 in June, a historic record and up 24.4% over one year. The median selling price could hit a new all-time high before the end of the year. Home prices in the United States have risen in double digits all year, thanks to low inventories and strong demand. Prices are much higher than they were before the pandemic in almost all parts of the country.
Record # 2: Housing Supply Drops To All-Time Low
There were only 1.38 million homes for sale in June on a seasonally adjusted basis. This is an all-time low and a 23% year-over-year drop. The United States is experiencing a housing shortage for a combination of reasons: a lack of new construction, growing demand from buyers and homeowners taking advantage of low mortgage rates to refinance rather than sell, to name a few.
Record # 3: The typical house sold in just 15 days
The typical house that sold in June and July was only on the market for 15 days. These are the lowest median days on the market in history and down from the 39 days in june 2020. The speed of the market is due in part to the supply crunch, which has caused buyers to rush homes as soon as they go up for sale, often without even seeing them in person.
Record # 4: More than 60% of homes were taken off the market in two weeks
Speaking of a fast-paced market, 61.4% of homes that contracted in March had an offer accepted within two weeks of entering the market, an all-time high.
Record # 5: More than half of homes sold above list price
Of the homes sold in June, 56.5% went above the list price. That’s a record and up 29.6 percentage points from the previous year. The average home sold 2.6% above the list price in June, another record.
Homes that sell above the list price are usually due to bidding wars, which were rampant this year: nearly three-quarters of the bids written by Redfin agents in April, for example, encountered competition from ‘another potential buyer.
Record # 6: Mortgage rates drop to 2.65%
The 30-year average fixed mortgage rate reached 2.65% in the week ending January 7, 2021, the lowest ever. Low mortgage rates are one reason for the home buying frenzy this year, which ultimately resulted in a shortage of supply and soaring prices.
Record # 7: Investors have bought almost one in five homes bought in the United States
Real estate investors bought 18.2% of homes bought in the United States during the third quarter of 2021. This is a record share and up from 11.2% a year earlier. In dollars, investors bought a record $ 63.6 billion home values ââduring this period, compared to $ 35.7 billion one year earlier. Many individual buyers have struggled to compete with investors, one factor that has made the housing market difficult for buyers this year.
Record n ââÂ° 8: the demand for second homes has almost doubled compared to before the pandemic
Demand from second home buyers rose 91% from pre-pandemic levels in January, marking record growth. Demand for vacation homes has skyrocketed as remote working took hold in mid-2020, leaving many well-off white-collar workers with the option of working in beach houses and ski cabins.
Record # 9: Almost a third of Americans have sought to relocate to another metropolitan area
Another side effect of the increase in remote working, 31.5% of Redfin.com users sought to relocate to another metropolitan area in the first quarter of 2021, a historic high and up from 26% from the previous year. Part of this is because remote workers are moving to relatively affordable areas in search of bigger homes, more outdoor space, and sunny weather.
Record # 10: Typical luxury home sold 25% more than the previous year
The median selling price of luxury homes in the United States jumped 25.8% year-on-year to $ 1,025,000 in the second quarter of 2021, marking record price growth. This compares to 16% year-over-year growth for mid-priced homes and 13.2% growth for affordable homes. The price growth of luxury homes outpaced that of more affordable homes, in part due to the fact that affluent Americans benefited from the strength of the stock market of the year, gains in home equity and work. from a distance.
To read the full report with graphics, visit https://www.redfin.com/news/housing-market-records-2021