Home prices continued their five-year run of increases in March, up 7.5 percent from last year to a national median sale price of $273,000. Sales growth was also strong, up 8.9 percent, even as the number of homes for sale fell for the 18th consecutive month, down 13 percent Y-O-Y. The typical home went under contract in 49 days, making it the fastest March for home selling on record since Redfin began tracking this data in 2010.
Nearly one in five (19.1%) homes that sold in March went under contract within two weeks, and 21.7 percent of homes sold for more than their list price.
“In addition to the laws of supply and demand, today’s open and immediate access to home listing information is really driving the velocity of home sales,” said Redfin Los Angeles real estate agent Alec Traub. “In the past, buyers had to wait for their agent to tell them which homes were for sale. Now, when I meet a client for the first time, they already have a home in mind and I can jump in to guide them on what it will take to win it.”
The overall speed and competition in March was driven primarily by hot markets out West such as Denver, Seattle and California’s Bay Area. Denver tied with Seattle as the fastest market in March, with the typical home going under contract within just eight days in these two cities. This isn’t new for Seattle, where homes were selling at the same pace a year ago, but in Denver homes went under contract 21 days faster this March than they did last year.
Most buyers in the Bay Area paid more than the asking price in March. In San Jose, 69.6 percent of homes sold above list; 66.7 percent sold above list in San Francisco, as did 65.9 percent in Oakland. Despite the competition, home sales increased across all three metros in the region.
As spring 2017 shapes up to be the fastest and most competitive housing market in recent years, we asked Redfin agents what buyers can do to make sure they don’t miss out on the right home once they’re ready to make an offer. Here’s what they had to say:
“As a seller’s agent, the first thing I do when I receive an offer is ask who the lender is. The best offers come from buyers who are pre-approved by a local lender with a strong reputation for speed and reliability. If I’ve worked with the lender before and know they can fund the loan and close on time, I am sure to highlight that for my client.” — Tiffany Aquino, Redfin Agent in Woodbridge, VA
“I’ve seen too many buyers miss out on their first choice because they were unrealistic about what the home would actually sell for in a strong market. If you’ve been pre-approved up to $450,000, you should be shopping for homes listed at or below $400,000 so you have room to escalate in a bidding war” — Kathy Miller, Redfin agent in Seattle, WA
“Most people have heard about the power of including a compelling cover letter along with their offer. These are important and they work, but it’s also important for your agent to make a connection with the listing agent. My clients often win with less-than-perfect offers because I’ve taken the time to earn the listing agent’s trust.” — Lindsay Katz, Redfin agent in Los Angeles, CA
“Offer a free 60-day rent-back up front. Many sellers are attempting to time the sale of their home while also trying to find a replacement home in a competitive market. The easier you make the sellers’ life, the more attractive your offer becomes.” — Adrienne Kieschnick, Redfin agent in Dallas, TX
Read additional creative bidding war strategy ideas from Redfin agents.
Competition
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Sales
Inventory
Below are market-by-market breakdowns for prices, inventory, new listings and sales for markets with populations of 1.5 million or more. For downloadable data on all of the markets Redfin tracks, visit the Redfin Data Center.
