August Data Show Continued Upward Push in Home Prices

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According to a new report from Redfin, the national median home price rose 11% year over year to $328,400 in August – the largest annual increase since February 2014. At the same time, low mortgage rates drove home buyer demand, but the supply of homes for sale has fallen to another new low.

Median prices increased in every one of the 85 largest metro areas Redfin tracks. The smallest increase was in New York (+2.7%). Meanwhile, Bridgeport, Conn. (+30.7%), Memphis, Tenn. (+20.5%) and Tulsa, Okla. (+19.8%) saw the largest year-over-year increases. 

Home sales were up 10.2% in August from a year earlier on a seasonally adjusted basis, which represents the largest increase in nearly four years. Home sales increased in August from a year earlier in 56 of the 85 largest metro areas – a slight decrease from July.

Active listings – the count of all homes that were for sale at any time during the month – fell 22% year over year to their lowest level on record in August, the 12th-straight month of declines. The supply shortage continued to worsen because buyers bought homes at a faster rate than the number of homes being listed. At the same time, a growing share of homes is selling quickly, leaving few homes lingering on the market from one month to the next.

Only two of the 85 largest metros tracked by Redfin posted a year-over-year increase in the count of seasonally adjusted active listings of homes for sale: San Francisco (+75%) and New York City (+10%). The sudden expansion of work-from-home policies due to the pandemic has led many people to flee these cities, two of the country’s most expensive housing markets.

The number of new listings of homes for sale increased 4.6% in August from a year earlier – only the third such increase in the past 15 months. Pending sales were up 29.8% from August 2019.

Also, in August, 32% of homes sold above list price – the highest level in Redfin’s data, which goes back through 2012 – up from 23.8% a year earlier.

To read the full report, click here.

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