The demand for housing in the U.S. has reached a new all-time high since 2017, a rare occurrence for this time of year when the market typically slows.
According to a Redfin report, a recovering economy and all-time low mortgage rates are critical factors in the current market.
Redfin’s Homebuyer Demand Index reported that in addition to accelerated demand, the number of homes listed for sale is decreasing at a slightly slower rate than in 2019 and 2020.
The report analyzed data from over 400 U.S. metro areas during the four-week period ended Nov. 14.
New listings were down 12% since six weeks earlier. Still, this is lower than the 18% decrease over the same period in 2019.
The median sale price of homes increased 13% year-over-year to $357,881. Asking prices of newly listed homes were also up 13% from the same time a year ago.
Active listings fell 22% from 2020 and 41% from 2019.
“People who tried to buy a home in the spring are coming back for round two, only to find the market is still quite difficult because of a lack of homes for sale,” said Daryl Fairweather, Redfin’s chief economist. “A lot of home buyers wish they had bought last year, now that it’s not just homes that are more expensive, but also gas, groceries and dining out. Many buyers today are limited to move-in-ready homes because it is so difficult and expensive to purchase new appliances or find contractors to make improvements.”