Homes Sold Faster Than Ever in April; Prices Marched Upward
The median home sale price increased 6.2 percent in April to $280,000, continuing a five-year trend of steady annual growth. A lack of homes for sale kept a lid on sales, which inched up just 1.2 percent compared to last year. The number of homes for sale fell 13.3 percent, the steepest decline in four years. Since October 2015, the supply of homes for sale has declined every month. The number of homes newly listed for sale in April fell 8.8 percent compared to a year ago. Just over three months of supply remained, compared to the six months that represents a market balanced between buyers and sellers.
The typical home went under contract in 40 days, 10 days faster than a year earlier, making April the fastest month on record since Redfin began tracking the market in 2010. One in four (24.7%) homes sold above their list price, which is the highest percentage Redfin has recorded. One in five (22.2%) homes that sold in April went under contract within two weeks of their debut.
“When it comes to the housing market breaking records, I’m beginning to sound like a broken record,” said Nela Richardson, Redfin chief economist. “The market tends to accelerate through June so I wouldn’t be surprised if new records for speed and competition are reached in May and June given what we are seeing now. The only record this market can’t break is sales. You need more inventory for that!”
Denver was the fastest-moving market for the second month in a row, with the typical home finding a buyer in just six days. The metro area had a 1.1-month supply of homes for sale, and nearly half (47.1%) of homes there sold for more than their list price in April.
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