Prices up 6.3%, sales fastest on record says Redfin
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US home prices were up 6.3% in May compared to a year earlier across 174 markets tracked by Redfin.
The real estate brokerage reported a median price of $305,600 across those markets and the rising prices meant buyers were keen to seal the deal faster.
Average days on market fell to just 34, down from 36 a year earlier and the fastest since Redfin began keeping record in 2010.
Denver was the fastest market, with the typical home going under contract in just six days. Seattle and Tacoma, WAwere the next fastest markets at seven median days on market, followed by Boston and Grand Rapids, MI at eight median days on market.
The data also shows that 27.6% of homes that sold in May did so for more than list price.
San Jose had the nation's highest price growth, rising 27.6% since last year to $1,250,000. Tacoma, WA had the second highest price growth at 19.6% year-over-year, followed by Memphis, TN (16.9%), Las Vegas, (15.9%), and Rochester, NY (15.4%).
"Prices are still increasing, but not at the same rate we saw earlier in the spring," said Redfin senior economist Taylor Marr. "The record percentage of homes sold above list price is at odds with the higher percentage of price drops in May. This tells us that while it's still very much a seller's market, price growth and rising mortgage rates may be pushing buyers to the limit of what they're able to pay."
Inventory continues lower
Listings increased 4.3% in the year from May 2017 and that helped a 3.6% rise in sales; but the overall supply of homes was down 5.4% year-over-year with just 2.5 months of supply at the end of May.
Indianapolis had the largest decrease in overall inventory, falling 37.7% since May of last year. Rochester, NY (-37.1%), Buffalo, NY (-32.8%), and Milwaukee (-22.9%) also saw far fewer homes available on the market than a year ago.
