Home Prices Skyrocket In August

The national median home price jumped 11 percent in August from a year earlier – the largest annual increase in more than six years, according to a report released Thursday by Redfin. The median home price in the United States was $328,400.

Median prices increased in all 85 largest metropolitan areas that Redfin tracks. The smallest increase was in New York (2.7 percent), while Bridgeport, Conn. (30.7 percent), Memphis (20.5 percent) and Tulsa (+19.8 percent) saw the largest year-over-year increases.  

“The supply of homes is tighter than ever, and home prices are growing at the fastest rate in years. Why isn’t this historic seller’s market holding back buyers?” said Redfin lead economist Taylor Marr said. “Homeowners are just now deciding to sell; they were just a little late to the game. These new listings have supplied buyers with homes to purchase. High prices almost always eventually draw sellers to market and with record low rates, trading out your home for a new mortgage can be more attractive than refinancing.”

The report also found:

  • Home sales were up 10.2 percent in August from a year earlier.
  • The typical home that sold in August went under contract in 31 days – eight days less than a year earlier – and tying the record low set in June 2018.
  • 32 percent of homes sold above list price, the highest level in Redfin’s data history – and up from 23.8 percent in August 2019.
  • The number of new listings of homes for sale increased 4.6 percent in August from a year earlier, only the third such increase in the past 15 months. Pending sales were up 29.8 percent from August 2019.
  • Active listings fell 22.0 percent year over year to their lowest level on record in August, the 12th straight month of declines. 

“The housing market is like a national game of musical chairs right now, where everyone wants to jump in now that remote work and low mortgage rates have changed the rules of the game. But will the music soon stop? Can builders add more chairs if the cost of doing so is skyrocketing?” Marr said.