According to the latest Redfin report, the housing market showed early signs of a bounce back in May as the addition of homes for sale and contracts increased significantly from April.
“The market remains overall very competitive thanks to a continuing shortage of homes for sale. U.S. home-sale prices increased just 0.5% year over year in May to a median of $299,400 across the 217 metros Redfin tracks. This was the smallest annual increase since home prices bottomed out in February 2012. However, the fact that this increase was so much smaller than the 4.7% gain in April was largely due to fewer homes being sold in the most expensive metro areas,” read the report.
Homes that sold in May spent 37 days on market, unchanged from the same month a year earlier.
“The market still feels really crazy,” said Redfin agent Amber Allin, who serves Tacoma, Washington—the nation’s fastest market with half of all homes going under contract in just eight days. “There are so few homes for sale right now, and those that are in good condition are selling incredibly fast.”