It seems that the only problem with the housing market today is that there aren’t enough houses for sale. According to Redfin, houses sold faster than ever in April, and the trend is only set to increase.
The reports from Redfin show an increase across the board for the housing market. Nationwide, the typical home entered a contract within the first 40 days on the market. Additionally, 20% of those homes were under contract within only two weeks.
In addition, home prices increased 6.2% since last year, bringing the median sale price to $280,000.
The housing market is breaking records across the board and Redfin Chief Economist, Nela Richardson, predicts an accelerating market through June. Everyone is ready to report higher numbers but there is just one problem.
They need more inventory.
In sharp contrast to the soaring sales, housing inventory has been in a steep decline for the last nineteen months.
In fact, Redfin reported the biggest drop in the last four years this April at 13.3% less homes for sale.
Rochester, NY saw the largest decline in overall homes for sale, falling almost 40% since last year. However, there is still hope. Especially with the growing demand for homes. Inventory increased in some major U.S. cities including Fort Myers, FL, Knoxville, TN and even here in Austin, TX.
Sifting through the details of the Redfin data shows a few other trends regionally for the housing market. For instance, the highest competition remains along the west side of the nation. Denver, CO reported the fastest market with over half of sold homes entering a contract in less than a week. Other fast markets included Seattle and Tacoma in Washington followed by Portland, OR.
All homes sold were under contract within 10 days or less.
The west coast also saw the best competition for homes selling above market price. Over three quarters of the homes sold in San Jose, CA, sold above their listing price. Close behind was San Francisco and Oakland, followed by Seattle and Tacoma.
On the up
For sellers, the good times are expected to keep rolling. Redfin predicts the market continuing this upward trend. The next step is getting more people to sell their homes.