Redfin just released a bunch of stats on the current state of the housing market. Below I’ve excerpted a few key stats from August 2020 to August 2021 that explain how it’s definitely still a seller’s market. But go read the full Redfin post for details on how these stats are slowly changing.
Part of the change is seasonality, and it’s a little too soon to tell if the market is cooling to better accommodate buyers.
So as a buyer, you do need to still be prepared for bidding wars in many markets. This means having your loan pre-approved and ideally pre-underwritten.
Pre-approval means your lender has reviewed your profile and believes you should be ok to close on the loan you’re seeking, and they’ll therefore write a pre-approval letter for you to submit with your offers.
Pre-underwriting means a lender’s underwriter (the person inside a lending org who issues formal loan approvals) has actually reviewed your loan and issued a conditional approval that requires a property to be appraised, underwritten, and approved in order to fund your loan.
Obviously you can’t do that until you get into contract on a property to buy. But when you talk to your lender you should ask them if they’re pre-approving you or pre-underwriting you. The latter makes you more able to compete on offers.
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– The median home-sale price increased 16% year over year to $361,225.
– 49% of homes that went under contract had an accepted offer within the first two weeks on the market.
– 35% of homes that went under contract had an accepted offer within one week of hitting the market.
– Homes that sold were on the market for a median of 18 days, up from the all-time low of 15 days seen in late June and July, and down from 34 days a year earlier.
– 52% of homes sold above list price, up from 32% a year earlier. This measure has been falling since the four-week period ending July 11 when it peaked at 55%.
– The average home sold for 1.6% above its asking price. This measure is down 0.6 percentage points from its peak during the four-week period ending July 11 and up 2.5 percentage points from a year earlier.