The median home sale price increased 15% year over year to $320,625 — the highest on record, according to a new report from tech-powered brokerage Redfin. The largest increase ever recorded in the Case-Shiller national home price index (which dates from 1988) was 14.5% in September 2005.
“Large, expensive, luxury homes are taking up a bigger share of the homes that are selling, which is driving a high growth rate for the median sale price,” said Redfin Chief Economist Daryl Fairweather. “Remote work is increasing demand from affluent people, while middle-income people are more often expected to do their jobs in-person, and many have been affected by furloughs and shutdowns.”
During the 4-week period ending October 4, home prices rose 16% from the same week a year earlier. Since the four-week period ending July 5, home prices have increased 6.8%. Over that same period in 2018 and 2019, prices declined an average of 4.4%. The median asking price of new listings was up 14.0% from a year earlier, an uptick from 12.9% during the four weeks ending September 27.
Lack of supply may also be a reason. Active listings (the number of homes listed for sale at any point during the period) fell 28% from 2019 to a new all-time low. Pending home sales climbed 26% year over year, the smallest growth rate since the four-week period ending August 16. New listings of homes for sale rose 4% from a year earlier, the first time year-over-year growth in new listings has fallen below 5% since the four-week period ending August 16.
