Redfin Reports Home Sales Posted Largest Monthly Decline Since Pandemic Onset

Written by Posted On Sunday, 16 January 2022 04:03

Housing supply fell to a new low in December, fueling a 3.6% month-over-month drop in home sales

Fewer homes than ever were for sale in December, driving seasonally-adjusted home sales down 3.6%, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. This marks the largest month-over-month sales decline since May 2020. Home prices surged 15% from a year earlier, the 17th consecutive month of double-digit increases.

“Home sales are slumping, but not for lack of demand,” said Redfin Chief Economist Daryl Fairweather. “There are plenty of homebuyers on the hunt, but there is just nothing for sale. In many markets, shopping for a home feels like going to the grocery store only to find the shelves bare. In January, I expect to see more buyers and sellers in the market, but demand will increase more than supply -- pushing prices higher at the start of this year.”

Market Summary

December 2021

Month-Over-Month

Year-Over-Year

Median sale price

$382,900

-0.1%

15.2%

Homes sold, seasonally-adjusted

579,300

-3.6%

-10.7%

Pending sales, seasonally-adjusted

593,800

-2.2%

-3.1%

New listings, seasonally-adjusted

629,900

-2.4%

-13.4%

All homes for sale, seasonally-adjusted

1,334,600

-3.2%

-18.9%

Median days on market

24

2

-7

Months of supply

1

-0.3

-0.3

Sold above list

42.8%

-1.5 pts

9.2 pts

Average sale-to-list

100.5%

-0.1 pts

1.1 pts

Average 30-year fixed mortgage rate

3.10%

+0.03 pts

+0.42 pts

† - “pts” = percentage-point change

“The wild housing market did not take a break for the holidays,” said Brionna Chang, a Redfin real estate agent in the San Francisco area. “There was one two-bedroom home in Orinda that was listed just before Christmas and around 40 people immediately came to the open houses. It ended up getting multiple offers and going for $325,000 over the $1.2 million asking price.”

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 fell 0.4% from a year earlier following a 28% year-over-year increase in December 2020. The largest price increases were in Austin, TX (+30%), North Port, FL (+28%) and Phoenix, AZ (+28%).

Seasonally-adjusted home sales in December were down 3.6% from a month earlier and 11% from a year earlier, the largest annual decline since June 2020. Home sales fell from the prior year in 79 of the 88 largest metro areas Redfin tracks. The biggest sales declines were seen in Nassau County, NY (-22%), New Brunswick, NJ (-22%) and Albany, NY (-21%). The largest gains were in Greenville, SC (+9%), Greensboro, NC (+8%) and Baton Rouge, LA (+7%).

Only one of the 88 largest metros tracked by Redfin posted a year-over-year increase in the number of seasonally adjusted active listings of homes for sale: Detroit, MI (+4%). The biggest year-over-year declines in active housing supply in December were in Baton Rouge, LA (-52%), San Jose, CA (-49%) and San Francisco, CA (-46%).

Seasonally adjusted new listings of homes for sale were down 13% in December from a year earlier, the largest decline since May 2020. New listings fell from a year ago in 82 of the 88 largest metro areas.

The typical home that sold in December went under contract in 24 days—a week faster than a year earlier, when homes sold in a median 31 days, but up nine days from the record low of 15 days in June.

In December, 43% of homes sold above list price, down 14 percentage points from the record high in June, but up 9 percentage points from a year earlier. The average sale-to-list price ratio in December was 100.5%, down from a record high of 102.6% in June but up from 99.4% a year earlier.

To read the full report, including charts and additional metro-level highlights, please visit: https://www.redfin.com/news/home-sales-down-11-pct/

Rate this item
(0 votes)
Redfin

About Redfin
Redfin (www.redfin.com) is a technology-powered real estate broker, instant home-buyer (iBuyer), lender, title insurer, and renovations company. 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. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 95 markets across the U.S. and Canada and employ over 4,100 people.

https://www.redfin.com

Agent Resource

How to capture your next prospect - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.