Redfin: Home Prices Surged 7.7 Percent in August as Inventory Fell 12.4 Percent

Hurricane Harvey sent Houston home sales down 29 percent while new listings tumbled 12 percent

Seattle, WA – September 14, 2017 (BUSINESS WIRE) (NASDAQ: RDFN) — Home prices in August surged 7.7 percent, the largest year-over-year price gain since May 2015, according to Redfin (www.redfin.com), the next-generation real estate brokerage. The national median sale price was $293,000, flat from July. None of the metro areas Redfin tracks saw prices decline in August. The median value of off-market homes in August was $251,000, as measured by the Redfin Estimate, up 0.7 percent from July.

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Sales in August fell 5.5 percent compared to last year, the largest decline posted since July 2016. This follows the 5 percent decline posted in July by the Redfin Housing Demand Index.

The number of homes for sale plunged 12.4 percent, the largest year-over-year decline in a 23-month streak of declining inventory. The number of new listings in August was down 1 percent from a year ago, leaving just 2.8 months of supply. Less than six months of supply signals the market is tilted in favor of sellers.

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Nearly a quarter (24.9%) of homes sold above their list price. The average sale-to-list ratio was 98.5 percent. The typical home that sold in August went under contract in 39 days, two days longer than July’s record-setting pace, typical of a seasonal slowdown.

“The real estate market still favors sellers, with strong demand and rising prices, but perhaps less so now than earlier in the year,” said Redfin CEO Glenn Kelman. “Newly listed homes are selling faster in 2017 than in 2016, but whereas in April the market was nine days faster than the 2016 market, in August it was five; the gap between 2016 and 2017 is narrowing slightly. Normally such differences wouldn’t be worth mentioning, but Redfin managers of coastal markets where demand has been strongest are now reporting that some buyers are stepping back from higher prices.”

Hurricane Harvey’s Impact on the Houston Real Estate Market

Hurricane Harvey sent Houston sales falling 29 percent year over year, as buyers backed out of purchasing flooded homes and home settlements were delayed awaiting required reinspections. Flood damage is limiting the number of homes being listed for sale. New listings declined 12.2 percent compared to last August. Despite the decline in new listings, inventory was still up 5.7 percent compared to last year.

While most real estate activity halted for a few days immediately following the storm, Redfin agents reported rebounding buyer interest, tours and offers in the final days of the month.

Other August Data

Competition

  • Seattle, WA was the fastest market, with nearly half of all homes pending sale in just 8 days, down from 10 days from a year earlier. Portland, OR and Denver, CO were the next fastest markets with 11 and 12 median days on market, followed by Boston, MA (13) and Tacoma, WA (13).
  • The most competitive market in August was San Jose, CA where 73.8% of homes sold above list price, followed by 72.3% in San Francisco, CA, 67.3% in Oakland, CA, 51.3% in Seattle, WA, and 48.1% in Tacoma, WA.

Prices

  • Seattle, WA had the nation’s highest price growth, rising 16% since last year to $522,000. Fort Lauderdale, FL had the second highest growth at 15.6% year-over-year price growth, followed by Cincinnati, OH (14.5%), Las Vegas, NV (14%), and San Jose, CA (13.4%).
  • No metros saw a price decline in August.
  • Detroit, MI had the highest month-over-month increase in the value of off-market homes up 3%, as measured by the Redfin Estimate; this mirrored price growth for on-market homes, up 5.3% year over year.

Sales

  • Columbia, SC saw the largest decline in sales since last year, falling 93.2%. Home sales in Newark, NJ and Houston, TX declined by 75.3% and 29.1%, respectively.
  • 4 out of 75 metros saw sales surge by double digits from last year. Camden, NJ led the nation in year-over-year sales growth, up 22%, followed by Baton Rouge, LA, up 21%. Baltimore, MD rounded out the top three with sales up 19% from a year ago.

Inventory

  • San Jose, CA had the largest decrease in overall inventory, falling 49.9% since last August. Oakland, CA (-31.8%), San Francisco, CA (-30.9%), and Tampa, FL (-26.8%) also saw far fewer homes available on the market than a year ago.
  • Austin, TX had the highest increase in the number of homes for sale, up 13.9% year over year, followed by New Orleans, LA (8.3%) and Houston, TX (5.7%).

Redfin Estimate

  • The median list price-to-Redfin Estimate ratio was 94.1% in San Francisco, the lowest of any market. This indicates the typical home for sale in August was listed at a price 5.9% below its estimated value. Only 8.9% of homes in San Francisco were listed for more than their Redfin Estimate.
  • Conversely, the median list price-to-Redfin Estimate ratio was 103% in Miami, FL and 102.6% in West Palm Beach, which means sellers are listing their homes for more than the estimated value in those metro areas. In Miami, 64.6% of homes were listed above their Redfin Estimate.

To read the full report, complete with data and charts, click here.

About Redfin

Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry’s lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.

Contacts

Redfin Journalist Services:
Alina Ptaszynski
(206) 588-6863
press@redfin.com

Redfin Housing Demand Index Dipped from June to July as Inventory Shortage Deepened

The number of Redfin customers requesting home tours and writing offers fell in July, but is still up by double digits year over year

Seattle, WA – September 1, 2017 (redfin.com) (NASDAQ: RDFN) The Redfin Housing Demand Index fell 5.0 percent from its all-time high of 130 in June to 124 in July, according to Redfin (www.redfin.com), the next-generation real estate brokerage. Still, the Demand Index was up 29.7 percent year over year. The Demand Index is adjusted for Redfin’s market share growth.

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The Demand Index is based on thousands of Redfin customers requesting home tours and writing offers. A level of 100 represents the historical average for the three-year period from January 2013 to December 2015. The underlying methodology to the Redfin Housing Demand Index was revised in August 2017 to improve the way it accounts for the company’s market share.

Across the 15 metros covered by the Demand Index, there were 13.9 percent fewer homes for sale in July than there were a year prior, and there was a 5.9 percent decline in new listings. July marked the 26th consecutive month of year-over-year inventory declines.

“Buyer demand has been stronger so far in 2017 than last year, but the combination of low inventory and rising home prices is taking its toll heading into the fall,” said Redfin chief economist Nela Richardson. “Sellers are still in control of the market, but their advantage is narrowing as buyers are becoming less willing or able to chase escalating prices.”

The seasonally adjusted number of buyers requesting home tours fell 3.3 percent from June to July, while the number of those who wrote offers dropped 11.0 percent. Compared to last year, 35.3 percent more buyers requested tours in July and 21.0 percent more wrote offers.

To read the full report, including metro-level demand data and charts, click here.

About Redfin

Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry’s lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.

Contact Redfin

Redfin Journalist Services:
Jon Whitely
(206) 588-6863
press@redfin.com

Realtor® Good Neighbor Award Finalists Honored for Their Tireless Efforts to Give Back

Washington, D.C. – September 5, 2017 (nar.realtor) The National Association of Realtors® has honored 10 Realtors® as finalists of REALTOR® Magazine’s 2017 Good Neighbor Awards. This award honors Realtors® who make an extraordinary impact on their community through volunteer work.

Good Neighbor Award

This year marks the 18th year the Good Neighbor Awards program has recognized Realtor® volunteers. Those being honored have donated their time and passion to improve and enrich the lives of the people in their communities. The 2017 finalists have cumulatively raised more than $48 million to make lives better for people in their communities.

“The Good Neighbor Award represents a thriving culture of giving back, and each of our finalists have made a tremendous difference in their communities,” said NAR President William E. Brown, broker-owner of Investment Real Estate in Oakland, California and founder of Investment Properties. “We congratulate this year’s 10 finalists for their outstanding efforts to help make the world a better place.”

On October 3, five winners will be named from among the 10 finalists. Winners will receive a $10,000 grant and national media exposure for their community charity, including a feature in the November/December issue of REALTOR® Magazine. The winners will also receive travel expenses to the 2017 REALTORS® Conference & Expo in Chicago, where they will accept their awards at a presentation in front of thousands of their peers. In addition, five honorable mentions will receive a $2,500 grant.

The public can also vote for their favorite of the 10 Good Neighbor finalists. The three finalists who get the most votes will be Web Choice winners and will take home additional donations of $2,500, $1,250 and $1,250 respectively. Cast votes at www.realtor.com/goodneighbor between September 5 and October 2.

The 10 REALTOR® Magazine Good Neighbor Awards finalists are:

Deborah Berg, Berkshire Hathaway HomeServices, Birmingham, Michigan for United Methodist Women’s Rummage Sale

Berg runs one of the country’s largest rummage sales, which raises $225,000 per year to support people in need through 35 local, national and international nonprofits. She manages a force of more than 700 volunteers during the twice-annual, week-long sales. Through the rest of the year, she oversees the acquisition of furniture and high value donations.

JoAnn and Joseph Callaway, Those Callaways Real Estate, Scottsdale, Arizona for Salvation Army

The Callaways mobilized thousands of local real estate professionals to serve as volunteer bell ringers, who collected more than $250,000 in red kettle donations for the Salvation Army. The Callaways also founded an innovative program that has raised $1 million to support addiction recovery.

Sal Dimiceli, Sr., Lake Geneva Area Realty, Lake Geneva, Wisconsin for The Time Is Now To Help

Dimiceli founded a nonprofit to ease the suffering of people living in poverty. He personally responds to requests for help by providing financial counseling and addressing individual needs, whether it’s providing emergency food assistance, transportation or child care so a person can hold a job, or paying overdue rent to prevent eviction. In 28 years, he has donated and raised nearly $17 million.

Lara Dolan, Keller Williams Realty Consultants, Roswell, Georgia for Cystic Fibrosis Foundation

Dolan is the driving force behind ShamRockin’ for a Cure, an annual event that has raised more than $2.5 million to help patients with cystic fibrosis. She uses her vast network of community connections to increase attendance and sponsorships to help CF patients get closer to a cure.

Bryson Garbett, Garbett Homes, Salt Lake City, Utah for Foundation Escalera

Garbett founded a nonprofit that provides access to education to children in the rural Chiapas region of Mexico. In 18 years, his organization—which has built 177 classrooms and provides high school scholarships—has helped nearly 100,000 students.

Howard W. “Hoddy” Hanna, III, Howard Hanna Real Estate Services, Pittsburgh, Pennsylvania for Howard Hanna Children’s Free Care Fund

Hanna leads a nonprofit that donates millions to children’s hospitals to fund treatment for children without insurance or whose treatment isn’t covered by insurance. Since 1987, Hanna and his company’s 9,000 real estate professionals in eight states have raised and donated more than $14 million.

Louise McLean, RE/MAX Solutions, Merritt Island, Florida for Space Coast Association of REALTORS® Charitable Foundation

McLean founded a nonprofit to support the more than 2,200 homeless children in Florida’s Brevard County with necessities such as food, clothing, school supplies, glasses and toiletries. They also provide nonessentials like sports equipment, band instruments and even college scholarships, allowing children to further their education.

Mony Nop, Mony Nop Real Estate, Livermore, California for Mony Nop Foundation

Nop created a nonprofit to encourage kids to set goals and achieve them by providing leadership training and scholarships. He uses his own experience as a child who fled the Khmer Rouge in Cambodia during the 1970s to motivate thousands of middle school and high school students to overcome their own challenges.

Donna Ting, Tri Isle Realty & Development Co., Wailuku, Hawaii for La’akea

Ting co-founded a residential and day program for developmentally disabled adults, the first of its kind to open on Maui since 1985. The facility includes a community center, a farm and a country store to provide life skills training and activities to help clients lead more independent and meaningful lives.

Kay Wilson-Bolton, Century 21 Troop Real Estate, Santa Paula, California for SPIRIT of Santa Paula

Wilson-Bolton founded Many Meals, which feeds up to 600 people a hot meal every Wednesday. She also distributes 30,000 pounds of food per month through a food bank, and, as an ordained chaplain, runs a reception center behind her real estate office where she counsels people in need.

REALTOR® Magazine’s Good Neighbor Awards is supported by primary sponsor realtor.com® and Wells Fargo. Nominees were judged on their personal contribution of time as well as financial and material contributions to benefit their cause.

Realtor.com® is the trusted resource for home buyers, sellers and dreamers, offering the most comprehensive database of for-sale properties, among competing national sites, and the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today helps make all things home simple, efficient and enjoyable.

Wells Fargo (link is external) is the nation’s leading originator and servicer of residential mortgages, offering home loans to consumers through the country’s largest network of mortgage locations and bank branches, online, and via phone. With more than 7,500 Home Mortgage Consultants across the country and robust digital capabilities, Wells Fargo is committed to meeting Realtor® expectations and homebuyer needs. Focused on a culture of caring for communities, Wells Fargo is a proud new sponsor of the Good Neighbor Awards to recognize the extraordinary contributions made by Realtors® in the communities where we together live and serve.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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Media Contact:

Cole Henry
(202) 383-1290
Email

Existing-Home Sales Slide 1.3 Percent in July

Washington, D.C. – August 24, 2017 (nar.realtor) Listings in July typically went under contract in under 30 days for the fourth consecutive month because of high buyer demand, but existing-home sales ultimately pulled back as large declines in the Northeast and Midwest outweighed sales increases in the South and West, according to the National Association of Realtors®.

NAR logo

Total existing-home sales(1), which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, slipped 1.3 percent to a seasonally adjusted annual rate of 5.44 million in July from a downwardly revised 5.51 million in June. July’s sales pace is still 2.1 percent above a year ago, but is the lowest of 2017.

Lawrence Yun, NAR chief economist, says the second half of the year got off on a somewhat sour note as existing sales in July inched backward. “Buyer interest in most of the country has held up strongly this summer and homes are selling fast, but the negative effect of not enough inventory to choose from and its pressure on overall affordability put the brakes on what should’ve been a higher sales pace,” he said. “Contract activity has mostly trended downward since February and ultimately put a large dent on closings last month.”

The median existing-home price(2) for all housing types in July was $258,300, up 6.2 percent from July 2016 ($243,200). July’s price increase marks the 65th straight month of year-over-year gains.

Total housing inventory(3) at the end of July declined 1.0 percent to 1.92 million existing homes available for sale, and is now 9.0 percent lower than a year ago (2.11 million) and has fallen year-over-year for 26 consecutive months. Unsold inventory is at a 4.2-month supply at the current sales pace, which is down from 4.8 months a year ago.

“Home prices are still rising above incomes and way too fast in many markets,” said Yun. “Realtors® continue to say prospective buyers are frustrated by how quickly prices are rising for the minimal selection of homes that fit buyers’ budget and wish list.”

Properties typically stayed on the market for 30 days in July, which is up from 28 days in June but down from 36 days a year ago. Fifty-one percent of homes sold in July were on the market for less than a month.

Inventory data from realtor.com® reveals that the metropolitan statistical areas where listings stayed on the market the shortest amount of time in July were Seattle-Tacoma-Bellevue, Wash., 28 days; San Jose-Sunnyvale-Santa Clara, Calif., 30 days; and Salt Lake City, Utah, and Vallejo-Fairfield, Calif., 31 days.

“July was the fourth consecutive month that the typical listing went under contract in under one month,” said Yun. “This speaks to the significant pent-up demand for buying rather than any perceived loss of interest. The frustrating inability for new home construction to pick up means inadequate supply levels will keep markets competitive heading into the fall.”

First-time buyers were 33 percent of sales in July, which is up from 32 percent both in June and a year ago. NAR’s 2016 Profile of Home Buyers and Sellers – released in late 2016(4) – revealed that the annual share of first-time buyers was 35 percent.

According to President William E. Brown, a Realtor® from Alamo, California, there’s a prominent misconception – especially among non-homeowners – that a down payment of at least 20 percent is needed to buy a home. “Every month this year, roughly 60 percent of buyers who financed their purchase with a mortgage made a down payment that was 6 percent or less(5),” he said. “Potential buyers with solid employment and manageable levels of debt will find that there are mortgage options available. Talk to a lender to find out what you qualify for based on your savings and let that guide you as you begin your home search with a Realtor®.”

According to Freddie Mac, the average commitment rate (link is external) for a 30-year, conventional, fixed-rate mortgage rose to 3.97 percent in July from 3.90 percent in June. The average commitment rate for all of 2016 was 3.65 percent.

All-cash sales were 19 percent of transactions in July, up from 18 percent in June but down from 21 percent a year ago. Individual investors, who account for many cash sales, purchased 13 percent of homes in July, unchanged from June and down from 11 percent a year ago. Distressed sales(6) – foreclosures and short sales – were 5 percent of sales in July, up from 4 percent in June and unchanged from a year ago. Four percent of July sales were foreclosures and 1 percent were short sales.

Single-family and Condo/Co-op Sales
Single-family home sales decreased 0.8 percent to a seasonally adjusted annual rate of 4.84 million in July from 4.88 million in June, but are still 1.7 percent above the 4.76 million pace a year ago. The median existing single-family home price was $260,600 in July, up 6.3 percent from July 2016.

Existing condominium and co-op sales fell 4.8 percent to a seasonally adjusted annual rate of 600,000 units in July, but are still 5.3 percent higher than a year ago. The median existing condo price was $239,800 in July, which is 5.3 percent above a year ago.

Regional Breakdown
July existing-home sales in the Northeast dropped 14.5 percent to an annual rate of 650,000, and are now 1.5 percent below a year ago. The median price in the Northeast was $290,000, which is 4.1 percent above July 2016.

In the Midwest, existing-home sales fell 5.3 percent to an annual rate of 1.25 million in July, and are now 1.6 percent below a year ago. The median price in the Midwest was $205,400, up 5.9 percent from a year ago.

Existing-home sales in the South rose 2.2 percent to an annual rate of 2.28 million in July, and are now 3.6 percent higher than a year ago. The median price in the South was $227,700, up 6.7 percent from a year ago. Existing-home sales in the West jumped 5.0 percent to an annual rate of 1.26 million in July, and are 5.0 percent above a year ago. The median price in the West was $373,000, up 7.6 percent from July 2016. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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NOTE: For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.

1. Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR rebenchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.

Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger data sample – about 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

2. The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.

The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single-family homes typically sell for more than condos as seen in NAR’s quarterly metro area price reports.

3. Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90 percent of transactions and condos were measured only on a quarterly basis).

4. Survey results represent owner-occupants and differ from separately reported monthly findings from NAR’s Realtors® Confidence Index, which include all types of buyers. Investors are under-represented in the annual study because survey questionnaires are mailed to the addresses of the property purchased and generally are not returned by absentee owners. Results include both new and existing homes.

5. According to NAR’s Realtors® Confidence Index, an average of 62 percent of buyers who financed their purchase with a mortgage made a down payment of 6 percent or less.

6. Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR’s Realtors® Confidence Index, posted at Realtor.org.

NOTE: NAR’s Pending Home Sales Index for July is scheduled for release on August 31, and Existing-Home Sales for August will be released September 20; release times are 10:00 a.m. ET.

Media Contact:

Adama DeSancatis
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