SEATTLE–Credit unions that offer mortgages (or anyone just shopping for a home) won’t be surprised by the latest numbers on home sales.
Home sales were up by nearly 9% in March compared with March 2016, even as the number of homes for sale plunged 13%, according to a new analysis released by Redfin. Reduced inventories, combined with a reduction in rates has led to the fastest average sales pace since Redfin began tracking in 2010. The typical home went under contract in just 49 days, down from 60 days a year ago, Redfin said.
The analysis found the median price of a home sold in March was $273,000, up 7.5% year over year.
"At some point consumer budgets will stagger behind the fast pace of price appreciation," predicted Nela Richardson, Redfin's chief economist, in a statement. "The combination of low inventory, high prices and strong competition will continually challenge first-time buyers this year and they are the cornerstone of the housing market."
The Redfin data was released at the same time as data from the Mortgage Bankers Association reported that Mortgage applications to purchase a newly built home in March were up 6.7% compared with a year ago to the highest level since the MNAS began tracking the metric in 2012.