There’s plenty of year-end milestones to celebrate in the single-family home market, which had one of its all-time best years ever, according to a new report from real estate brokerage Redfin.
This past year, home-sale prices hit the highest median of all time, the number of homes for sale fell to an all-time low, and there was record demand for second homes.
It’s more than that. “The ongoing pandemic, including its seismic effect on the US economy and the way Americans live and work, has made 2021′s housing market anything but typical,” Redfin Chief Economist Daryl Fairweather said in prepared remarks. This year’s frenzied housing market has been one for the books—but it may become more balanced in 2022.” With that in mind, it is instructional to look at milestones set in the past 12 months.
Record #1: Typical US home sold for nearly $400,000
The national median home-sale price hit is at an all-time high and up 24.4% year over year.
Record #2: Home supply dropped to historic levels
The US is in a housing-supply shortage because of a lack of new construction, surging demand from buyers, and homeowners taking advantage of low mortgage rates to refinance rather than sell.
Record #3: Typical home sold in just 15 days
The typical home that sold in both June and July was on the market for just 15 days. That’s the lowest median days on market in history and down from 39 days in June 2020
Record #4: Over 60% of homes off the market in two weeks
Some 61.4% of homes that went under contract in March had an accepted offer within two weeks of hitting the market.
Record #5: More than half of homes sold above list price
Homes selling above list price is typically due to bidding wars, which were commonplace this year.
Record #6: Mortgage rates dropped to 2.65%
The average 30-year fixed mortgage rate hit 2.65% the week ending January 7, 2021, the lowest of all time.
Record #7: Investors purchased nearly 1 in 5 of all homes bought in the US
Many individual homebuyers have found it tough to compete with investors.
Record #8: Demand for second homes nearly doubled from pre-pandemic
Demand for vacation homes soared as remote work took hold in mid-2020, leaving many affluent white-collar workers with the ability to work from beach houses and ski chalets.
Record #9: Nearly one-third of Americans looked to move to a different metro area
Remote workers moving to relatively affordable areas in search of larger homes, more outdoor space and sunny weather.
Record #10: Typical luxury home sold for 25% more than the year before
The median sale price of US luxury homes jumped 25.8% year over year to $1,025,000 in the second quarter of 2021, marking record price growth.