March saw rapid U.S. home sales despite rising interest rates and an ever-declining inventory of houses for sale, according to Redfin’s March report published on Thursday.
Close to one in five homes sold in March went into contract within two weeks of hitting the market, and more than one in five sold for more than their list price, the report said. As a result, the median U.S. home price has increased 7.5% from last year, to $273,000.
More:Cecil B. DeMille’s $25 Million Estate Finds a Buyer
Redfin’s report covers all sales activity, and does not break out the luxury or high-end.
The typical home went into contract in 49 days last month—making it the fastest March since the brokerage started tracking the stat in 2010.
Meanwhile, the number of homes for sale declined for the 18th consecutive month and are now down 13% from a year ago.
A Los Angeles-area real estate agent for Redfin credited speedy sales in part to the growth of online listing sites.
"In addition to the laws of supply and demand, today’s open and immediate access to home listing information is really driving the velocity of home sales," said listing agent Alec Traub in the report. "In the past, buyers had to wait for their agent to tell them which homes were for sale. Now, when I meet a client for the first time, they already have a home in mind and I can jump in to guide them on what it will take to win it."
More:San Francisco Luxury Home Prices Wobble in First Quarter
Hot markets on the West Coast, Seattle and the greater San Francisco area drove much of the price growth, according to data from Redfin. However, it was a mixed bag at the very top, where Grand Rapids, Michigan, had the nation’s highest price growth in March, increasing 16% since last year. Orlando, Florida, saw prices grow 15.5%; Santa Rosa, California, 15%; and Seattle 14.5%.
Bidding wars caused two in three buyers to pay above asking price in San Jose, San Francisco and Oakland.