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Record-Fast Home Sales Reflect Various Market Trends

Considering recent reports revealing just how competitive one must be to purchase a home [1] in most parts of the country it should come as little surprise that Redfin just reported that [2] homes today are selling faster than any time in recorded home-selling history.

Redfin analyst Tim Ellis reports that 59% of listed houses are under contract within two weeks.

While demand is still intense, Redfin's research showed some early indications that an increasing number of potential buyers are throwing in the towel as prices climb to new heights and mortgage rates tick up.

“Some homebuyers have reached their limit on bidding wars and soaring prices,” said Redfin Chief Economist Daryl Fairweather [3]. “Add to the mix a dwindling number of homes for sale and rising mortgage rates, and the typical family that is still searching for an affordable house may have missed the boat. First-time homebuyers who were already stretching their budgets will have to make bigger compromises on size and location or resign to renting for another year. However, those who are flexible should look to the condo market where there’s still a bit less competition. Looking ahead, Biden’s infrastructure plan [4] aims to incentivize zoning for multifamily homes, which could increase the supply of affordable homes and provide even more people a path to homeownership, but there is no guarantee the incentives would be enough for local governments to change their zoning practices.”

Redfin's researchers showed year-over-year comparisons. In many instances, atypical stats can be attributed to stay-at-home-orders a year ago that halted both homebuying and selling activity.

A recap: