Redfin: Home Prices and Buyer Competition Hit New Highs in June as Inventory Drought Dragged into 21st Consecutive Month

New records set: 26.6 percent of homes sold in June went for more than their asking price and the typical home found a buyer in 36 days

In Denver, Seattle and Portland, the typical home sold in June was off the market in a week

Seattle, WA – July 13, 2017 (BUSINESS WIRE) U.S. home prices rose 7.3 percent to a median sale price of $298,000 in June, according to Redfin (www.redfin.com), the next-generation real estate brokerage. This is the highest national median sale price Redfin has recorded since the company began keeping track in 2010.

Redfin Logo

Home sales increased 1.9 percent compared to last year, constrained by a long-standing inventory shortage. The number of homes for sale fell 10.7 percent, leaving just 2.5 months of supply—the lowest supply on record since 2010—and well below the six months that represents a market balanced between buyers and sellers.

Every record in market speed and competition that was set in May was broken again in June. The typical home that sold in June went under contract in 36 days, one day faster than in May, setting a new record-fast pace for home sales. Denver, Portland and Seattle were the fastest-moving markets, with the typical home in each market finding a buyer in just seven days. More than a quarter (26.6%) of homes sold above their list price, the highest percentage Redfin has recorded. The average sale-to-list price ratio hit a record high of 95.5 percent in June.

“This market is unlike any we’ve ever seen before,” said Redfin chief economist Nela Richardson. “Month after month, new records are set for the pace at which homes are going under contract. Demand continues to swell while supply troughs. For buyers competing in this market, it’s survival of the fittest. The strongest offers that are most likely to close quickly and smoothly rise to the top of the pile.”

Regional June Highlights

Competition

  • Denver, CO, Portland, OR and Seattle, WA tied for fastest market at 7 median days on market, followed by Grand Rapids, MI (8) and Boston, MA (9).
  • The most competitive market in June was San Jose, CA where 73.7% of homes sold above list price, followed by 70.6% in San Francisco, CA, 69.8% in Oakland, CA, 62.3% in Seattle, WA, and 52.6% in Tacoma, WA.

Prices

  • Fort Lauderdale, FL had the nation’s highest price growth, rising 15.6% since last year to $260,000, followed by Nashville, TN (14%), Seattle, WA (13.5%), Tacoma, WA (12.2%), and Deltona, FL (12.1%).
  • Two metros saw price declines in June: Greensboro, NC (-1.2%), and Tulsa, OK (-0.3%).

Sales

  • Ten out of 89 metros saw sales surge by double digits from last year. Poughkeepsie, NY led the nation in year-over-year sales growth, up 42.6%, followed by Camden, NJ, up 23.1%. Lakeland, FL rounded out the top three with sales up 16.3% from a year ago.
  • Buffalo, NY saw the largest decline in sales since last year, falling 26.9%. Home sales in Rochester, NY and Fort Lauderdale, FL declined by 21.2% and 15.5%, respectively.

Inventory

  • San Jose, CA had the largest decrease in overall inventory, falling 42.2% since last June. Rochester, NY (-29.7%), San Francisco, CA (-26.6%), and Tampa, FL (-26.5%) also saw far fewer homes available on the market than a year ago.
  • Three metros in Utah saw the highest increases in the number of homes for sale. Ogden, UT had the highest increase in inventory, up 40.5% year over year, followed by Provo, UT (36.7%) and Salt Lake City, UT (30.1%).

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 $40 billion in home sales.

Contacts

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

Zillow Launches $1 Million Zestimate Competition for Data Scientists

Zillow publishes Zestimates for 110 million homes; Participants in Kaggle-hosted contest will compete for $1.2 million in total prizes, the largest prize pool ever awarded in a machine learning competition

Seattle, WA – May 24, 2017 (PRNewswire) Zillow, the leading real estate information and home-related marketplace, today has launched Zillow® Prize, an award of $1 million to the first person or team who can most improve the Zestimate® algorithm, Zillow’s proprietary home valuation tool. Zillow Prize calls for data scientists, engineers and visionaries to compete to improve automated home valuations of 110 million homes across the U.S.

Zillow Prize

Designed to be a starting point to help people estimate the value of a home when it launched in 2006, the Zestimate home valuation marked the first time homeowners had instant access to information about their homes’ estimated values, for free. Prior to the Zestimate, only appraisers, mortgages lenders and professional real estate agents had access to computer valuations of homes – never homeowners or prospective buyers.

To homeowners, sellers and buyers, the Zestimate home valuation remains an important data point. Combined with other information, like recent home sales, and the guidance of real estate professionals, the Zestimate helps consumers make smarter financial decisions about their homes.

To data scientists, the Zestimate home valuation is known as the ultimate algorithm, one of the highest-profile, most accurate and sophisticated examples of machine learning. Zillow Prize will mark the first time that a portion of the proprietary data that powers the Zestimate home valuation will be available to individuals outside of Zillow.

Zillow’s data science team continually works to improve the accuracy of the Zestimate home valuation, as measured by how close the Zestimate is to the eventual sale price of a home. The U.S. median absolute percent error currently stands at 5 percent, improved from 14 percent in 2006.

“We still spend enormous resources on improving the Zestimate, and are proud that with advancements in machine learning and cloud computing, we’ve brought the error rate down to 5 percent nationwide,” said Stan Humphries, creator of the Zestimate home valuation and Zillow Group chief analytics officer. “While that error rate is incredibly low, we know the next round of innovation will come from imaginative solutions involving everything from deep learning to hyperlocal data sets — the type of work perfect for crowdsourcing within a competitive environment.”

The contest is being administered by Kaggle, a platform designed to connect data scientists with complex machine learning problems. It will be staggered into two rounds, the public qualifying round which opens today and concludes Jan. 17, 2018(i) and a private final round that kicks off Feb. 1, 2018 and ends Jan. 15, 2019(ii).

Contest participants have until Oct. 16, 2017 to register for the qualifying round, download and explore the competition data set(iii), and develop a model to improve the Zestimate residual error. The top 100 teams from the qualifying round, those whose solutions most reduce the difference between the Zestimate home valuation and the actual sale price of the homes within the dataset, will be invited to participate in the final round and compete for the $1 million dollar prize.

In the final round, the winning team must build an algorithm to predict the actual sale price itself, using innovative data sources to engineer new features that will give the model an edge over other competitors. The home value predictions from each algorithm submission will be evaluated against real-time home sales in August through October 2018. To take home the $1 million dollar grand prize, the winning algorithm must beat Zillow’s benchmark accuracy on the final round competition data set(iv) and enhance the accuracy further than any other competitor. A $100,000 second place prize and $50,000 third place prize will also be awarded in the final round. A total of $50,000 will also be awarded to the top three ranking teams in the qualifying round.

Zillow publishes Zestimates on more than 110 million homes across the country based on 7.5 million statistical and machine learning models that examine hundreds of data points on each individual home.

To calculate the Zestimate home valuation, Zillow uses data from county and tax assessor records, and direct feeds from hundreds of multiple listing services and brokerages. Additionally, homeowners have the ability to update facts about their homes and see an immediate change to their Zestimate. More than 70 million homes on Zillow have been updated by the community of users.

More details on registering and competing for the Zillow Prize are available at www.zillow.com/promo/zillow-prize/.

Zillow

Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. Zillow serves the full lifecycle of owning and living in a home: buying, selling, renting, financing, remodeling and more. In addition to Zillow.com®, Zillow operates the most popular suite of mobile real estate apps, with more than two dozen apps across all major platforms. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG) and headquartered in Seattle.

Zillow, Zestimate and Zillow.com are registered trademarks of Zillow, Inc.

(i) Detailed qualifying round timeline is as follows: All submissions are due on October 16, 2017. There will be a three-month evaluation period, which begins on October 17, 2017, when submissions will be evaluated against the actual sale prices of the homes. The final leaderboard will be revealed on January 17, 2018.

(ii) Detailed final round timeline is as follows: All contests submissions are due on June 29, 2018. Because real estate transaction data is public information, there will be a one-month gap followed by a three-month evaluation period, which begins on August 1, 2018, when submissions will be evaluated against the actual sale prices of the homes. The final leaderboard and final prize winners will be revealed on or about January 15, 2019.

(iii) Qualifying round data set will encompass a list of real estate properties in Los Angeles, Orange and Ventura, CA counties.

(iv) Final round participants are challenged to beat the Zillow benchmark model, a modified version of the Zestimate algorithm that will be trained using the exact same data set available to everyone in the final round. This benchmark model has been created for the purposed of this competition and is different than the standard Zestimate displayed on the website.

Redfin Report: Home-Buying Competition Bound to Increase in 2016 as Demand Continues to Outpace Supply

Prices Up 7.7% in January From Last Year; Sales Up 6.7%, Inventory Drops 5.6%

Redfin Home Tour Index Reaches Highest Level on Record but Offers Fall

Seattle, WA – February 18th, 2016 (BUSINESS WIRE) The housing market is going to get more competitive in 2016, according to Redfin (www.redfin.com), the next-generation real estate brokerage. Home sales grew 6.7 percent in January from last year, while depleted inventory pushed the median sale price up 7.7 percent to $255,300. Total inventory fell 5.6 percent, while the number of new listings inched up 0.5 percent year over year.

Redfin_logo

Demand has outpaced supply since early 2015, when inventory began to drop sharply in many metro areas and home sales rose even faster. In January, Redfin saw its home tour index, which measures the number of customers requesting tours, reach its highest level on record, while the number of customers making offers fell year over year for the first time since October of 2013. This means more buyers are searching, but fewer are having success finding the right home in their price range.

High home prices and low mortgage rates in 2015 failed to entice enough homeowners to move up or list their homes to create the substantial growth in inventory needed to meet demand. In January, while a few markets saw big increases in inventory (Miami up 48.6% and Denver up 30.7%), other hot markets saw dramatic drops (Seattle down 39% and Portland down 37%).

Where will the market go from here? Redfin foresees three potential outcomes in 2016:

1. Homeowners and builders bring more balance to the market. Many more homeowners would need to decide to move up or otherwise list their homes, and builders would need to bring a million-and-a-half more new homes on the market than they did last year.

2. More competition, more price growth, stagnant sales. Bidding wars become even more prevalent when demand remains strong and supply is choked by lack of new listings and not enough new construction. Prices increase by double-digit rates in many regions, and home sales hover near 2015 levels.

3. Buyers retreat, prices peak. Low inventory, high prices and competition in many areas squeeze buyers out of the market. Growth in home sales stalls, prices peak and the top of this housing cycle is realized.

“The economy is facing significant headwinds this year. Though housing is positioned for growth, it is also extremely sensitive to the jarring macroeconomy,” said Redfin’s chief economist Nela Richardson. “So far sales have been bulletproof to price increases, but this is unsustainable in a slowly growing economy unless inventory improves.”

To read the full report, complete with data and charts, please visit the following link: www.redfin.com.

Redfin also took an in-depth look at home prices, inventory and sales across neighborhoods for four cities: Chicago, Los Angeles, San Francisco and Washington, D.C.

About Redfin:

Redfin (www.redfin.com) is a next-generation real estate brokerage that represents people buying and selling homes. Founded by technologists, Redfin employs a team of experienced, full-service real estate agents who are advocates for their clients, earning customer-satisfaction bonuses, not just commissions. Redfin.com features all the broker-listed homes for sale, as well as for-sale-by-owner properties that don’t pay brokers a commission. Redfin also offers online tools, built by its own software engineers, that make the entire process of buying or selling a home easier. The company serves more than 80 major markets across the U.S. and has closed more than $25 billion in home sales. In 2014, Redfin was included in CNBC’s Disruptor 50 list as an innovator that is revolutionizing the real estate industry.

Contacts:

Redfin Journalist Services
Rachel Musiker
(206) 588-6863
press@redfin.com

Enter to Win Florida Realtors Environmental (ENVY) Award

Orlando, FL – April 10, 2015 (PRNewswire) Don’t wait to enter Florida Realtors® annual Environmental Award program, or you may be green with ENVY when the winner is chosen. Popularly known as the “ENVY” award, the honor goes to a development that best preserves Florida’s natural quality of life. The award may be given in two categories: one for residential development and one for commercial development.

Florida Realtors Logo

The most recent winner, Summit East Technology Park, a 117-acre commercial development in Tallahassee, was honored with Florida Realtors’ 24th ENVY Award. Designed in harmony with Florida’s natural resources, the project was recognized for demonstrating green building practices.

Summit East Technology Park is located at the crossroads of Highway 90 and Interstate 10, two major traffic corridors in eastern Leon County, Fla. The project’s founder, Rick Kearney, was committed to building an ecologically friendly and “green” community, but he also wanted to create a place where businesses could utilize the latest advances in technology, according to Summit officials.

Judges praised the development as a “comprehensive, green development that exemplifies the benefit of establishing an environmentally conscious framework within the planning and design stages of a project.” They noted that the quality of the spaces in between and surrounding the buildings was given as much importance as the quality of the buildings themselves. With its conservation areas, outdoor amenities and civic events, Summit East provides excellent recreation and common areas for its tenants, visitors and families.

Some of the other environmentally-concerned developments named as past ENVY Award winners include: Oakland Park, Baldwin Park, Verandah, Lakewood Ranch, Wild Heron, Harmony, World Golf Village, Solivita, Amelia Island Plantation and Viera.

The winner in each category will receive a distinctive Lucite trophy, recognition at Florida Realtors 2015 Convention and Trade Expo, Aug. 19-23, and statewide news coverage as Florida’s top environmentally conscious builder. A panel of distinguished environmental and planning professionals judges the competition. The entry deadline is Wednesday, July 8, 2015.

ELIGIBILITY: All Florida commercial developments are eligible. Also, all planned residential developments with a minimum of 30 residential units in Florida qualify. Residential developments must be currently available for marketing and must include a model home.

JUDGING CRITERIA: For each criteria category, applicants should explain how the project goes above and beyond current environmental preservation and/or building code minimal requirements. Please include photos, site plans and other documents that illustrate your points to the judges. Provide narrative that clearly demonstrates and explains the development’s environmental features, environmental or preservation activities and design aspects to help the judges better review your project. Explain what makes your project stand out from the rest – what are you the most proud of? Why should your development receive Florida Realtors ENVY Award? These are the things judges want to know.

Commercial: (1) Preservation of natural flora and fauna; (2) Architectural compatibility; (3) Design in scale and context with surrounding environment; (4) Open space and access/usability of surrounding environment; (5) Common area access and usefulness; (6) Streets, pedestrian and bicycle access; (7) Drainage as a design feature; (8) Marketability; and (9) Tell us what makes your project stand out from the rest – what are you the most proud of?

Residential: (1) Preservation of natural flora and fauna; a) Highlight any restoration areas or efforts; b) Include any corridors/buffer zones; c) Highlight wetlands areas; (2) Landscaping/compatibility with surrounding environment; (3) Design in scale and context with surrounding environment; a) Highlight and explain any specific “green” standards and/or certification standards endorsed by the project – such as standards from the Florida Green Building Coalition, LEED-ND (Leadership in Energy and Environmental Design-Neighborhood Development) standards or National Home Builders green building standards; (4) Open space and access/usability of open space; a) Highlight green space and unusual features; (5) Family recreation and common areas; a) Highlight special areas; (6) Streets and safety features; (7) Drainage and stormwater design features; a) Highlight any unique stormwater plans; (8) Marketability; and (9) Tell us what makes your project stand out from the rest – what are you the most proud of?

SUBMISSION: There is no entry limit and no cost to enter. Please email the necessary documentation either as a PDF, send a flash drive or send it in a three-ring binder. The entry should include the following material in this order: (1) A written overview of the development (maximum of four pages, typed, double spaced – remember it can be scanned and sent as a PDF file); (2) Supporting material and photographs that address the judging criteria in the order listed above — no videotapes or slides; and (3) A set of land development plans and other supporting data, if warranted. Upon request, entry materials may be returned after judging.

DEADLINE: All entries must be received at Florida Realtors’ headquarters by Wednesday, July 8, 2015. Please send entries as PDFs, marked 2015 ENVY Award, to marlam@floridarealtors.org. Or send submissions via regular mail to ENVY Award, Florida Realtors, 7025 Augusta National Drive, Orlando, FL 32822-5017.

For more information about the ENVY award, call (407) 438-1400, ext. 2326.

Florida Realtors®, formerly known as the Florida Association of Realtors®, serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 140,000 members in 58 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org.

The AgencyLogic Weekly Quiz and Giveaway!

Starting this week we will be giving away lots of goodies including single property Websites and Facebook business pages! All you need to do is answer a simple question and you don’t need to be an AgencyLogic customer to participate.

To see this weeks question visit our Facebook page and then email your answer to support@agencylogic.com. Good luck!

Voting for $20k Home Renovation Now Open on HouseLogic

HouseLogic announces six finalists for Boost Your Roost contest and encourages the public to vote for the winner

WASHINGTON – July 31, 2012 (Realtor.org) HouseLogic.com, the award-winning, comprehensive website for homeowners from the National Association of Realtors®, is pleased to announce the six finalists in the website’s “Boost Your Roost” contest. Boost Your Roost gives homeowners a chance to win a $20,000 home renovation and star in original web videos this fall, documenting the transformation from start to finish. Voting is now open to the public, who will help select the lucky winner. Each visitor to HouseLogic can cast one vote per day, now through August 13.

“HouseLogic congratulates everyone who entered the contest. All the ideas were creative and inspiring,” said Pamela Kabati, NAR senior vice president of Communications and HouseLogic spokesperson. “We invite people to come read the finalist stories and vote for their favorite. Good luck to our six finalists.”

Thousands of homeowners entered to for their chance to win; entries were narrowed down to these six finalists:

The winner will be announced on August 20, 2012.

For more information on official Boost Your Roost contest rules and tips on how to make smart decisions and take responsible actions to maintain, protect and enhance the value of your home, visit www.houselogic.com.

HouseLogic is a free source of information and tools from the National Association of Realtors® that helps homeowners make smart decisions and take responsible actions to maintain, protect, and enhance the value of their home. HouseLogic helps homeowners plan and organize their home projects and provides timely articles and news; home improvement advice and how-tos; and information about taxes, home finances, and insurance.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.