Even as the real estate market is showing signs of cooling and more and more sellers are dropping asking prices, median home prices increased by double digits nationally from last year, according to a new Redfin report.
Median home sale prices increased 16% to $361,225 from last year as pending sales are showing seasonal declines — but are still 10% more than they were a year ago. The report found demand is still strong despite the cooling market and sellers are still in the driver’s seat.
“Demand for homes is making a comeback because even though home prices are high and competition is still steep, homebuyers don’t have many alternatives but to keep trying,” Redfin Chief Economist Daryl Fairweather said in a press release. “This continued demand for homes is enticing more homeowners to sell in order to avoid the fear of missing out on historically high prices. This enthusiasm from both buyers and sellers is translating into continued growth in pending sales compared to last year.”
Several key indicators showed notable changes according to the report.
During a four-week period ended August 22, newly listed home prices increased 10% to $351,730 from last year, the lowest since mid-April and down 2.7% from their July all-time high.
Pending home sales dropped 6% from their May 30 peak, while 52% of homes sold above list price, up 32% from a year prior.
The number of days on market remained flat at 18 days.
Almost half of all homes (49%) went under contract with an accepted offer within two weeks of being listed, up 44% from a year prior and down 8% from its peak from the four weeks ended March 28.
The report also found 35% of homes had an accepted offer within a week of being listed, up from 32% a year ago and down 8% from its 2021 peak.
Additionally, the report noted a 3% week-over-week increase in mortgage applications. Thirty-year mortgage rates fell slightly to 2.86% for the week ending August 19.