Redfin expects competition to intensify as seller enthusiasm wanes
The median price of homes sold in March reached $297,000, representing an 8.9% year-over-year increase, the highest growth in four years, according to Redfin.
Data from the 174 markets that Redfin tracks also showed that the number of homes for sale declined by 11.9% to 636,800 compared to March 2017. The lack of inventory continued to constrain sales, which fell 3.7% to 230,300 from the year-ago period. Redfin recorded 326,100 new listings during the month, a 5.6% drop year-over-year.
"The Easter holiday fell early this year, which may have played a role in the decline in new March listings. Sellers are slow to list this year and we aren't seeing enough new construction homes to fill the gap," Redfin Chief Economist Nela Richardson said. "If we don't see the new listings number turn around next month or a pickup in new housing starts, inventory will be a persistent drag on sales for the remainder of the year."
Strong buyer demand coupled with waning seller enthusiasm to make the market highly competitive. The typical home went under contract faster than any March on record. Homes were under contract in 43 days during the month, eight days faster compared to March 2017.
Redfin data also showed that 23.9% of home that sold in March took more than their list price. This compares to a 22.3% share in the year-ago period. Mores home sold during the month went under contract within two weeks of their debut at 20.5% compared with the 18.4% share in the same month in 2017.
