The residential real estate market set all kinds of records in March.
The median home price hit an all-time high of $353,000, a 17 percent increase from the same time in 2020, according to a new Redfin analysis first reported by Inman. Forty-two percent of the homes that sold in March netted more than their listing price, also a record high. And for the first time since Redfin began tracking, the sale-to-list ratio was above 100 percent.
Despite those record highs, the average listing sold within 25 days. The number of active listings declined in March for the 20th consecutive month, down 29 percent from February and 7 percent from the same time last year.
A mismatch between supply and demand is fueling the red-hot housing market. Some observers have called the sharp increase in housing values a pricing bubble. But Redfin’s chief economist says that’s not the case.
“Fundamentals like low mortgage rates and high demand for housing are fueling the record-high price gains, so I don’t believe that homes are overvalued,” said Marr.
Still, by some estimates, the U.S. needs four million more homes just to meet current demand, according to mortgage lender Freddie Mac, meaning homebuilders would need to construct as many as 1.2 million single-family homes per year to meet long-term demand.
[Inman] — Orion Jones