Redfin has come out with the latest numbers pertaining to the housing market in the U.S. The results showed median home sale price has gone up 13% year-over-year in the last 4-weel period ending January 3.
Redfin Chief Economist Daryl Fairweather said:
"The economy faces new challenges in the next few weeks, which are likely to see continued political instability and rising coronavirus cases.
"Still, it's unlikely that either will have a meaningful or long-term impact on homebuying demand, which, already extremely strong, is now bolstered by even lower mortgage rates.”
The seasonally adjustedRedfin Homebuyer Demand Index, which measures requests for home tours and other services from Redfin agents, is up 35% from pre-pandemic levels in January and February of 2020. This is most likely due to the effects of the pandemic, as social distancing becomes the new norm for all aspects of our lives, including house hunting.
When it comes to over 400 metro areas in the U.S. during this 4-week period: Redfin found:
For the week ending January 7, 30-year mortgage rates hit a new record low of 2.65%. Fairweather explained that:
“Migration and progressive economic policies will shape the housing market in the months to come. The recent migration of Americans to affordable places like Atlanta, Phoenix and suburbs across the country has contributed to what will be a major change in fiscal and economic policy starting on January 20. While more government spending could lead to moderate mortgage-rate increases, it will also likely include programs to make homeownership affordable to more people."