As the country's homes for sale inventory declines, prices and the percentage of homes going under contract quickly are rising, according to Redfin.
The housing inventory dropped 12.7% in December from a year earlier to the lowest level reported in three years, Redfin reported Thursday. Among homes sold last month, 32.7% were under contract within two weeks, which Redfin characterized as "the largest reduction in inventory in any single month…on record."
"We’ve never before seen homes turn over so quickly at a national level," Redfin Chief Economist Nela Richardson said in a news release. "This tells us that buyers are not deterred by low inventory, election uncertainty and slightly higher mortgage rates. If anything, these headwinds are motivating them to act sooner rather than later."
In December, homes went under contact in 54 days on average, five days fewer than a year ago. And home prices rose 4.7% year over year last month.
Still, not every housing market is experiencing these conditions. Six metropolitan areas recorded home price declines in December, including Baton Rouge, La., where home prices fell 7.7% from a year earlier.
