March Home Prices Up 8.9%, the Biggest Increase in Four Years – @Redfin
The median home sale price increased 8.9 percent in March from a year ago, the highest price growth in four years. The median home sale price in March was $297,000 in the 174 markets that Redfin tracks.
The lack of homes for sale, down 11.9 percent year over year, continued to constrain sales, which declined 3.7 percent. The number of homes newly listed for sale in March fell 5.6 percent compared to a year ago.
“The Easter holiday fell early this year, which may have played a role in the decline in new March listings. Sellers are slow to list this year and we aren’t seeing enough new construction homes to fill the gap,” said Redfin chief economist Nela Richardson. “If we don’t see the new listings number turn around next month or a pickup in new housing starts, inventory will be a persistent drag on sales for the remainder of the year.”
Though seller enthusiasm is waning, buyer demand is strong, making for a highly competitive market. The typical home went under contract in 43 days, eight days faster than a year earlier and faster than any March on record. Among homes that sold last month, 23.9 percent sold above their list price, up from 22.3 percent last March. One in five (20.5%) homes that sold in March went under contract within two weeks of their debut, compared to 18.4 percent last year.
Seattle was the fastest-moving market for the second month in a row, joined by Denver. Homes in these metros were on the market for a median of just seven days in March.
Market Summary March 2018 Month-Over-Month Year-Over-Year Median sale price $297,200 4.4% 8.9% Homes sold 230,300 34.5% -3.7% New listings 326,100 26.3% -5.6% All Homes for sale 636,800 2.2% -11.9% Median days on market 43 -10 -8 Months of supply 2.8 -0.8 -0.2 Sold above list 23.9% 2.8% 1.7% Median Off-Market Redfin Estimate $281,300 -0.8% 6.1% Average Sale-to-list 98.6% 0.8% 0.6%
Strong price growth was not limited to hot coastal markets like San Jose, CA (32.3%) and San Francisco (16.7%). Places like Allentown, PA (21.8%), Detroit (20.6%) and Las Vegas (16.5%) are also experiencing strong price appreciation.
Inventory declined in 65 of the 73 most populous metros Redfin tracks below. In 48 of those metros, inventory fell more than 10 percent compared to last year. Baton Rouge, Washington, D.C., and Allentown bucked the declining inventory trend, respectively adding 26.6 percent, 11.8 percent and 11.4 percent to housing supply from last year.