Active Listings Fall to All-Time Low

For the four-week period ending February 7, Redfin reported that median home prices increased 15%, pending home sales were up 29%, and new listings fell 11% from the same period a year earlier.

The median home sale price increased to $318,750, and asking prices on new listings hit an all-time high of $334,770, which is 10% higher than last year.

"In a typical year, asking prices do not surpass the previous year’s peak until March," researchers noted.

Active listings fell 37%, and 52% of homes had an accepted offer within two weeks of going under contract.  That's "well above" 43% seen a year ago, researchers said.

Also, Redfin reported, "This is the first time the four-week average has surpassed 50% since at least 2012 (as far back as Redfin’s data for this measure goes). For this period, the rate was 57%."

The seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other services from Redfin agents—was up 63% from the same period a year ago, according to the Q4 report.

And mortgage purchase applications decreased 5% week over week (seasonally-adjusted) and were up 17% from a year earlier (unadjusted) during the week ending February 5. For the week ending February 4, 30-year mortgage rates were unchanged at 2.73%.

"There is a serious lack of new listings, and although prices are through the roof, homeowners are reluctant to sell, because it’s so hard to buy again unless you are moving to a less expensive area where you can afford to outbid other buyers," said Redfin chief economist Daryl Fairweather. "Sellers who are concerned about finding their next home are asking buyers for a rent-back agreement, which allows the seller to stay in the home until they can move into their next one. Offering a rent-back agreement can also be a winning strategy for buyers with flexible timelines."

Redfin's full report can be found on the company's website.