Home prices soared last month, climbing 8.9 percent over March of last year with 23.9 percent of homes selling above list price. The jump was the biggest monthly growth in the past four years according to a new report from tech brokerage Redfin…

Home prices soared last month, climbing 8.9 percent over March of last year with 23.9 percent of homes selling above list price. The jump was the biggest monthly growth in the past four years according to a new report from tech brokerage Redfin.

While prices jumped, the lack of homes for sale (-11.9 percent year-over-year) and the low number of homes newly listed for sale (-5.6 percent year-over-year), led to an overall 3.9-percent decline in sales compared to March 2017. Redfin’s chief economist Nela Richardson believes an early Easter holiday may have contributed to the declines.

“Sellers are slow to list this year and we aren’t seeing enough new construction homes to fill the gap,” said Richardson. “If we don’t see the new listings number turnaround next month or a pickup in new housing starts, inventory will be a persistent drag on sales for the remainder of the year.”

Compared to last year, inventory dropped in 65 of the 73 metro areas Redfin tracks, and declines reached more than 10 percent in 48 of those metros. Baton Rouge, Louisiana, on the other hand, saw a 26.6-percent increase in inventory. Washington D.C. (+11.8 percent) and Allentown, Pennsylvania (+11.4 percent) also saw a significant uptick in housing supply over the same time frame.

Low inventory numbers led to a competitive market last month with strong buyer demand that led to quick closings, the report added. The typical home went under contract in 43 days — eight days quicker than a year earlier, and faster than any March since Redfin has been tracking data.

Just over 20 percent of homes sold went under contract with two weeks of their market debut, according to the report. In the fast-moving markets of Seattle and Denver, homes were on the market for an average of just one week.

Email Patrick Kearns

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×