2020 was a record-breaking year for home sales, and a major indicator of this pandemic surge in housing was the speed in which many homes were sold.
And so far in 2021, indications show sales are off to an even stronger start. According to Redfin, 55% of homes were in contract within two weeks of listing for the week ending Jan. 24.
Redfin says last week set the highest percentage since 2012, when it began recording such data.
By comparison, the same week in 2020 had 35% of homes in contract within two weeks. For the year 2020 as a whole, 43% of homes were within contract within two weeks.
That’s because, according to Redfin, home sales are up 30% from this time a year ago. Also, supply of homes has dropped significantly, leading to an increase in housing prices.
"Buyers are incredibly hungry for listings, but unfortunately there isn't much to choose from, and that scarcity is making buyers all the more frenzied," said Redfin chief economist Daryl Fairweather. "As a result, the majority of the homes that hit the market are getting multiple offers right away. Not only do you have to be fast to win a home, you have to be prepared and resourceful. I recommend that buyers on a tight budget target homes that are priced 5 to 10 percent below their maximum price so they have room to increase their offer in a bidding war."