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Home Price Gains Accelerate, Hit a New Record High in February

RDFN | March 17, 2022

More homes are selling above list price than ever seen at this time of year as record-low inventory of homes for sale spurs unprecedented levels of competition

(NASDAQ: RDFN) —Home prices climbed 16% year over year to a new all-time high of $389,500 in February as the number of homes for sale fell to another new low, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The lack of inventory is holding back home sales, which were down 4% from January.

“An acute shortage of homes for sale continues to stymie buyers in the current market,” said Redfin chief economist Daryl Fairweather. “Rather than dropping out of the housing market, homebuyers only seem to be getting even more voracious, driving prices up at a startling clip. Typically, rising mortgage rates weaken demand for homes—we don’t see demand weakening yet, but we will be watching to see if buyers back off or remain steadfast amidst rising borrowing costs.”

The median sale price rose 3.5% between January and February, the fastest month-over-month gain ever seen during the winter months.

Market Summary	February 2022	Month-Over-Month	Year-Over-Year
Median sale price	$389,500	3.5%	16.1%
Homes sold, seasonally-adjusted	594,300	-7.0%	-6.1%
Pending sales, seasonally-adjusted	561,700	-4.2%	-2.8%
New listings, seasonally-adjusted	628,700	-0.4%	-0.9%
All Homes for sale, seasonally-adjusted	1,340,300	-1.5%	-13.8%
Median days on market	25	-2	-8
Months of supply	1.3	0	-0.3
Sold above list	47.3%	4.8 pts†	11.1 pts†
Median Off-Market Redfin Estimate	$406,500	3.7%	20.7%
Average Sale-to-list	101.3%	0.9 pts†	1.5 pts†
			† - “pts” = percentage-point change

“Virtually every home for sale gets multiple offers these days,” said San Diego Redfin real estate agent Ashley Van Leuven. “Most listings receive 20 or more offers, and the buyers who win are nearly always waiving contingencies and offering substantially above list price—sometimes by several hundred thousand dollars.”

Median sale prices increased from a year earlier in all but one of the 88 largest metro areas Redfin tracks. The only metro area with a decrease was Bridgeport, CT, where home prices are still correcting from a major pandemic surge and fell 6% from a year earlier. The largest price increases were in North Port, FL (+29%), Phoenix, AZ (+28%) and Las Vegas, NV (+28%).

Seasonally-adjusted home sales in February were down 7% from a month earlier and down 6% from a year earlier. Home sales fell from the prior year in 63 of the 88 largest metro areas Redfin tracks. The biggest sales declines were in Rochester, NY (-27%), Anaheim, CA (-21%) and Albany, NY (-20%). The largest gains were in Houston, TX (+22%), McAllen, TX (+16%) and Tulsa, OK (+10%).

Seasonally adjusted active listings—the count of all homes that were for sale at any time during the month—fell 14% year over year to an all-time low in February.

82 of the 88 largest metros tracked by Redfin posted year-over-year decreases in the number of seasonally adjusted active listings of homes for sale. The only metro areas where the number of homes for sale increased were Elgin, IL (+22%), Detroit, MI (+8%), Chicago, IL (+5%) and Austin, TX (+2%). The biggest year-over-year declines in active housing supply in February were in Greensboro, NC (-43%), Allentown, PA (-41%) and Fort Lauderdale, FL (-38%).

New listings fell from a year ago in 53 of the 88 largest metro areas. The largest declines were in Allentown, PA (-41%), Greensboro, NC (-39%) and Charlotte, NC (-23%). Listings rose the most in New York, NY (+19%), Memphis, TN (+17%) and Houston, TX (+17%).

Home sales that closed in February reflected a turn toward a more competitive housing market, a trend that is typical for this time of year, even as we exit the most competitive winter ever.

The typical home that sold in February went under contract in 25 days—eight days faster than a year earlier, when homes sold in a median 33 days, and the shortest time on market ever for a February. In February, 47% of homes sold above list price, up 11 percentage points from a year earlier, up 5 points from January and the highest level seen in February.

The average sale-to-list price ratio in February was 101.3%, up from 99.8% a year earlier, up from 100.4% in January and the highest level on record for a February.

To read the full report, including charts and additional metro-level highlights, please visit: https://www.redfin.com/news/home-prices-surge-to-new-record-february/

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.

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 press@redfin.com. To view Redfin's press center, click here.