SEATTLE–Home prices continued to soar in May. According to Redfin, the average price of a home increased 6.8% to a median home price of $288,000.
The increase in price came at the same time home sales were also up 7.5% over 2016, even as the market remains tight on supply, according to Redfin.
Redfin data show that during May the number of homes for sale fell 10.9% to just 2.7 months of supply, the lowest level since Redfin began tracking the market in 2010. Six months is generally considered a balanced market between buyers and sellers, Redfin said.
The data show that the typical home went under contract in less than 37 days in May, breaking the previous record of 40 days set in April of this year. More than 25% of homes sold at or above their listing price, Redfin added.
The company said the median sale-to-list price ratio also set a new record, hitting 95.4% in May.