Continued inventory shortages and heightened buyer demand led to a red-hot May where nearly 60 percent of homes went under contract in two weeks.

Even in the face of record-low inventory and skyrocketing median home prices, homebuyers aren’t giving up on their homeownership dreams, as evidenced by Redfin’s latest market report released on Friday. A whopping 51 percent of homes sold above listing price in May — almost double the rate from last year (26 percent).

Median home sale prices ($354,250) and median home asking prices ($361,875) both reached all-time highs, with buyers, on average, offering 1.9 percent above the asking price. The average days on market dropped to a record low of 17 days, as nearly 60 percent of homes went under contract within two weeks.

As a result of booming buyer demand, new listings (-8 percent) and active listings (-49 percent) were well below May 2019 levels, which Redfin said was a more accurate barometer of market growth than May 2020, when most of the country was still under lockdown.

Daryl Fairweather | Photo credit: Redfin

Redfin Chief Economist Daryl Fairweather said current trends won’t reverse until mortgage rates rise later this year, which should temper buyer demand.

“We are seeing a typical late-spring slowdown in new listings and pending sales,” she said in a written statement. “However, prices don’t typically peak until late August, and their growth remains completely unhinged.”

“The fact that homes keep selling for more and more above asking prices goes to show that many more people want a home than there are homes for sale,” she added. “I don’t see that changing until mortgage rates increase, which will likely happen later this year. But until then, the housing market will remain red-hot.”

Email Marian McPherson

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×