Redfin reported that demand for homes continued unabated, further eroding inventory and driving days on market even lower.

In a press release issued, Redfin reported that average home prices nationally increased a dramatic 7.8% year-over-year from January 2017 to January 2018.

According to the statement, the median sale price was $280,500 across the markets, despite the number of sales falling 7.9% on an annual basis.

Redfin reported that the number of homes for sale in January fell by 14.4%, which, based upon their metrics, represents the largest year-over-year decline in 28 consecutive months.

The typical home that sold in January found a buyer after 53 days on the market, six days faster than January 2017. The percentage of homes that sold above listing price (19.2%) and the average sale to list price ratio (97.8%) were both up slightly compared to January of last year, setting the stage for a spring market that could be even more competitive than last year.

It is believed that the buyer attitude is that they are looking to make their purchase before mortgage rates climb any higher.

Some Markets Are Selling So Fast
Who would have imagined? In one of the hottest real estate markets, a San Jose homes sold a month faster than January 2017, where the average home sold in just 12 days, 30 days fewer than last January. On top of the speedy sales, the average San Jose home sold 9% over the asking price. San Jose, CA had the largest decrease in overall inventory, falling 43.6% since last January. San Jose was also the most competitive market for January 2017 where 75.5% of homes sold above list price, followed by 62.2% in Oakland, CA, 60% in San Francisco, CA, 41.7% in Seattle, WA, and 37.6% in Tacoma, WA.

Other markets included Seattle, WA and Oakland, CA which came in at 16 and 17 median days on market, and then Denver, CO at 19 days and San Francisco, CA at 23 days.