Is this the fastest real estate market ever?
CNBC and Redfin think that it might be. At least since 2010 when they started tracking this statistic.
Nationwide, home sales were up almost 9% in March year over year. However, at the same time the inventory of homes for sale is down 13%. This combination results in two things: First, prices have risen. The median home sold in March was up 7.5% over last year. Secondly, it creates a lot of anxious competition amongst buyers.
That second point is the one that the report focused on. According to Redfin, just one year ago the typical home went to contract in 60 days on average. Today, the equivalent home is going into contract in only 49 days!
Now keep in mind that they have only been tracking this since post the financial crisis. Still, it is a significant increase in speed from last year’s spring season. The combination of rising prices, still low mortgage rates and reduced supply has created a sense of urgency where buyers feel that they need to jump on a good listing quickly when they see it. If they hesitate, it is gone before they get a chance. This past month we have been seeing some of this feverish competition locally as well. Particularly amongst the nicest mid-market listings and in some of the very tight markets like South Pasadena, where supply is always an issue.