Is the Housing Market Breaking Speed Records?

By Heather Munro | Comments

Last month, homes in the U.S. housing market sold at the fastest rate on record, according to Redfin, which first began tracking this data in 2010. The typical home in May was under a sales contract in just 34 days, two days fewer than in April. April had been the record-breaking month until May figures were analyzed.

Not only did homes sell faster in May, but 27.6% more than their listing prices — again, the highest percentage on record since Redfin began tracking data. Prices overall were up 6.3% from May 2017, with no metros at all experiencing price declines. The median home price in May was 305,600. Prices are continuing to go up, but at a slower rate than previously, a Redfin economist said.

Let’s take a look at which areas of the country homes sold the fastest and then, where they had the biggest price growth.

Which Housing Market Was the Fastest?

The typical home for sale in Denver, Colo., was under contract in just six days. Denver was followed by Seattle and Tacoma with the typical home in each market selling in only seven days. These two Washington metros were followed by Boston, Mass., and Grand Rapids, Mich., eight days.

Where Did Prices Increase the Most?

Prices rose the most in these markets since last May:

1. San Jose, Calif., up 27.6%
2. Tacoma, Wash., up 19.6%
3. Memphis, Tenn., up 16.9%
4. Las Vegas, Nev., up 15.9%
5. Rochester, N.Y., up 15.4%

What About Volume and Inventory?

The markets with the biggest increase in sales volume since last May were:

1. Warren, Mich., up 38.5%
2. Baltimore, Md., 31.8%
3. Camden, N.J., up 24.7%

The number of new homes hitting the market was up across the nation, but the number of homes on the market overall still dropped by 5.4%. The markets with the largest inventory growth since last year were:

1. Portland, Ore., up 35.3%
2. Detroit, Mich., up 28.4%
3. Allentown, Penn., and Baton Rouge, La., up 24.4%
4. Warren, Mich., up 20.3%

The markets with the largest decreases in inventory were:

1. Indianapolis, Ind., down 37.7%
2. Rochester, N.Y., down 37.1%
3. Buffalo, N.Y., down 32.8%
4. Milwaukee, Wisc., down 22.9%

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