The new year kicked off with the hottest January on record, despite having the first pending sales decline since June of 2020, according to a recent Redfin report. 

Last month, 45% of homes found a buyer within two weeks of being listed, while 35% went under contract within a week, rates Redfin officials say are the highest they’ve seen for this time of year. 

While January was hot, pending home sales fell 1% during the four weeks ended Jan. 23. It was the first year-over-year decline since June 2020. Lack of buyers wasn’t the issue, it was the lack of sellers. 

In January, new listings fell 12%, the largest decline since June 2020, as the number of homes for sale hit another record low. The median asking price rose 13% to $360,281, just below October’s all-time high, while the median sale price increased 14% year over year to $357,300, according to the report. 

Early spring 2022 is poised to be the hottest housing market on record but it may be short-lived, according to Redfin chief economist Daryl Fairweather. 

“Now that the stock market is down about 10% from the start of the year and mortgage rates are up nearly half a point, the housing market could lose its luster soon,” he said. “If that happens, I expect the inventory shortage to finally reach its nadir because overpriced homes will start to pile up on the market.”

More than a third of all homes (35%) went under contract with an accepted offer within one week of being listed, up from 30% a year prior. Additionally, 41% of homes sold above list price, up from 32% last year. 

The report noted a 2% week-over-week decrease in mortgage applications during the week ended Jan. 21. Thirty-year mortgage rates were flat at 3.55% for the week ended Jan. 27, the highest level since March of 2020.