According to this Market Tracker article by Redfin Chief Economist Nela Richardson, last month was the fastest, most competitive month for the U.S. housing market since Redfin began tracking these metrics seven years ago.
In June, the typical home went under contract in 41 days, the shortest time on record, and four fewer days than we saw last June. And 25.9 percent of homes went off the market in just two weeks, up from 22.6 percent last year.
This year’s speed and competition have been driven by a mismatch between supply of and demand for homes that has grown wider each month.
Months of supply dropped to its lowest level at 2.8 months, indicating buyer demand outstripped supply by the widest margin we’ve seen in seven years. Buyers responded to the tight competition by making aggressive offers. The average sale-to-list price percentage hit 95.5, a the highest ratio we’ve seen, up from 94.9 percent last year. And 23.6 percent of homes sold above the list price, up from 22.2 percent last year.
“Now that most Denver real estate agents have been navigating this this tight inventory, competitive market for a solid two years, a rhythm has emerged and just about every hot home that hits the market here follows it,” said Redfin agent Michelle Ackerman in Denver, the nation’s fastest market, where the typical home went under contract in six days last month. “Homes are listed on Thursday, with a deadline for offers on Monday. Many homes are technically under contract by Monday but that status is often not reflected in the MLS until Tuesday. So homes are actually selling even faster than reported.”
June’s hot market ushered in a 5.5 percent year-over-year increase in home prices, following two consecutive months with price growth below 5 percent.
Four Florida cities led the nation in price growth. Tampa prices rose 16.9% to $194,000 and in Orlando the median sale price rose 16.7% to $210,000.
The Pacific Northwest was another region that saw strong price acceleration last month. Portland median sales prices rose 12.3% to $347,000, Tacoma was up 12.0% to $285,000 and Seattle was up 11.4% to $462,500.
A third of metros saw sales surge by double digits from last year.
