Home Prices at New High in February Amid Record Low Inventory

RE/MAX National Housing Report on MLS Data from 53 Metro Areas

Denver, CO – March 17, 2017 (PRNewswire) February home prices reached a new high as steady demand combined with record low inventory drove prices up, according to this month’s RE/MAX National Housing Report that surveys 53 metro areas.

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Last month saw a negligible decline (-0.02%) in home sales from February 2016, which posted the most sales in the nine-year history of the report. Less than half of the markets experienced an increase in sales year-over-year.

Meanwhile, active inventory reached a record low for February, dropping 17.9% year-over-year. This marks the 100th consecutive month of year-over-year declines dating back to October 2008.

As a result, the Median Sales Price of $212,000 – another February record – was up 6% year-over-year. This is the 11th consecutive month of year-over-year price increases.

Homes sold faster last month, with average Days on Market dropping from 75 in February 2016 to 68 last month. For this month’s housing report infographic click here.

“Inventory, not the rise in interest rates, remains the principal constraint on home sales,” said Dave Liniger, RE/MAX CEO, Chairman of the Board and Co-Founder. “The resale market is driven dramatically by the availability of new homes. Most U.S. markets have a high demand for new home construction, and although it’s good to see housing starts trending upward, we still need more.”

Closed Transactions:

Of the 53 metro areas surveyed in February 2017, the overall average number of home sales decreased 0.02% compared to February 2016. Of the 53 metro areas, 23 experienced an increase in sales year-over-year, with nine experiencing double-digit increases. The markets with the largest increase in sales included Trenton, NJ +26.2%, Nashville, TN +19.4%, Las Vegas, NV +18.2%, Wichita, KS +14.6% and Birmingham, AL +13.3%.

Median Sales Price – Median of 53 metro median prices:

In February 2017, the median of all 53 metro Median Sales Prices was $212,000, up 1.4% from January 2017 and up 6.0% from February 2016. Only six metro areas saw year-over-year decreases or remained unchanged, with 16 rising by double-digit percentages. The largest double-digit increases were seen in Fargo, ND +19.9%, Burlington, VT +18.4%, Tampa, FL +15.9%, Indianapolis +14.3% and Dallas/Ft. Worth, TX +13.9%.

Days on Market – Average of 53 metro areas:

The average Days on Market for homes sold in February 2017 was 68, up two days from the average in January 2017, but down seven days from the February 2016 average. The three metro areas with the lowest Days on Market were San Francisco, CA at 32, Omaha, NE at 34 and Denver, CO at 38. The highest Days on Market averages were in Augusta, ME at 147 and Chicago, IL at 109. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 53 metro areas:

The number of homes for sale in February 2017 was down 2.2% from January 2017, and down 17.9% from February 2016. Based on the rate of home sales in February, the Months Supply of Inventory was 3.6, compared to January 2017 at 3.8 and February 2016 at 4.0. A 6.0-month supply indicates a market balanced equally between buyers and sellers. In February 2017, 45 of the 53 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller’s market. The remaining eight saw a months supply above 6.0, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory continued to be in the west, with both Denver, CO and Seattle, WA at 1.0 and San Francisco, CA at 1.1.

Contact:

For specific data in this report or to request an interview, please contact newsroom@remax.com.

About the RE/MAX Network:

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Over 110,000 agents provide RE/MAX a global reach of more than 100 countries and territories. Nobody sells more real estate than RE/MAX, when measured by residential transaction sides. RE/MAX, LLC, one of the world’s leading franchisors of real estate brokerage services, is a wholly-owned subsidiary of RMCO, LLC, which is controlled and managed by RE/MAX Holdings, Inc. (NYSE: RMAX). With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $150 million for Children’s Miracle Network Hospitals® and other charities. For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.com. For the latest news about RE/MAX, please visit www.remax.com/newsroom.

Description:

The RE/MAX National Housing Report is distributed each month on or about the 15th. The first Report was distributed in August 2008. The Report is based on MLS data in approximately 53 metropolitan areas, includes all residential property types, and is not annualized. For maximum representation, many of the largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state. Metro area definitions include the specific counties established by the U.S. Government’s Office of Management and Budget, with some exceptions.

Definitions:

Transactions are the total number of closed residential transactions during the given month. Months Supply of Inventory is the total number of residential properties listed for sale at the end of the month (current inventory) divided by the number of sales contracts signed (pended) during the month. Where “pended” data is unavailable, this calculation is made using closed transactions. Days on Market is the number of days that pass from the time a property is listed until the property goes under contract for all residential properties sold during the month. Median Sales Price is the median of the median sales prices in each of the metro areas included in the survey.

MLS data is provided by contracted data aggregators, RE/MAX brokerages and regional offices. While MLS data is believed to be accurate, it cannot be guaranteed. MLS data is constantly being updated, making any analysis a snapshot at a particular time. Every month the RE/MAX National Housing Report re-calculates the previous period’s data to ensure accuracy over time. All raw data remains the intellectual property of each local MLS organization.

Florida’s Housing Market: More Sales, Rising Prices in January 2017

ORLANDO, Fla., Feb. 22, 2017 /PRNewswire/ — Florida’s housing market reported more closed sales, higher median prices, increased pending sales and more new listings in January, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide totaled 16,779 last month, up 5.2 percent from January 2016.

“Florida’s housing market continues to show positive momentum,” said 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart. “While existing inventory remains tight, Realtors® across the state are reporting interest from both buyers and sellers – and with interest rates expected to rise over the next few months, now is certainly a good time to take action. On the buyer front, new pending sales for existing single family homes in January increased 3.8 percent year-over-year; pending sales for townhouse-condo units increased 6.5 percent. On the sellers’ side, new listings for single-family homes rose 7.6 percent year-over-year, while new townhouse-condo listings ticked up 0.9 percent.

“When market conditions are tight, consumers can get ahead by working with a Realtor who’s an expert in the local area,” Wells said. “A Realtor will have the knowledge needed to help both buyers and sellers through the complex homebuying process.”

Home sellers continued to get more of their original asking price at the closing table in January: Sellers of existing single-family homes received 95.6 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.6 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $220,000, up 10.1 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in January was $161,000, up 6.6 percent over the year-ago figure. January marked the 62nd month in a row that statewide median prices for both sectors rose year-over-year. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in December 2016 was $233,500, up 3.8 percent from the previous year; the national median existing condo price was $221,600. In California, the statewide median sales price for single-family existing homes in December was $509,060; in Massachusetts, it was $355,000; in Maryland, it was $269,319; and in New York, it was $240,000.

Looking at Florida’s townhouse-condo market, statewide closed sales totaled 7,209 last month, up 6.2 percent compared to January 2016. Closed sales data reflected fewer short sales and cash-only sales last month: Short sales for townhouse-condo properties declined 47.7 percent while short sales for single-family homes dropped 36.3 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“Florida’s markets for existing homes are off to a good start in 2017,” said Florida Realtors® Chief Economist Dr. Brad O’Connor. “Throughout much of this housing cycle, growth in single-family home sales has outpaced that of condos and townhouses, but in January – for the first time since November 2015 – this was not the case, though one month’s worth of data alone doesn’t indicate a long-term trend.

Also, new listings of single-family homes were up in January compared to last year, including in the $150,000 to $250,000 range where inventory is sorely needed throughout the state. That said, inventory was still down overall in this range, as this segment of the market remains in high demand throughout the state.”

Inventory dipped to a 4.2-months’ supply in January for single-family homes and was at a 6.4-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.15 percent in January 2016, up significantly from the 3.87 percent average recorded during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center at media.floridarealtors.org and look under Latest Releases, or download the January 2017 data report PDFs under Market Data at: media.floridarealtors.org

Florida Realtors® serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 165,000 members in 55 boards/associations. Florida Realtors® Media Center website is available at media.floridarealtors.org.

Experts: Rising Mortgage Rates Will Have a Significant Impact on 2017 Housing Market

Housing experts also cited low inventory as an important driver of the market

Seattle, WA – Feb. 10, 2017 (PRNewswire) Increasing mortgage rates and their impact on affordability will be the most significant force driving the 2017 housing market, according to the latest Zillow® Home Price Expectations Survey(i).

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The quarterly survey, sponsored by Zillow and conducted by Pulsenomics LLC, asked more than 100 housing experts and economists what factors would have the greatest impact on U.S. housing this year. The most frequent answer was rising mortgage rates and their impact on mortgage affordability, with more than half of panelists selecting it(ii).

The survey respondents ranked low inventory and shifting demographics, as millennials age into their prime home-buying years and the housing needs of aging Baby Boomers change, as the next most important factors for the 2017 housing market.

Buyers and homeowners have been able to take advantage of historically low mortgage rates on purchase or refinance loans for the past several years, but rates jumped following the presidential election in November, and have since hovered around 4 percent. In December, the Federal Reserve voted to raise the federal funds rate – which can influence mortgage rates – by 25 basis points for the second time in the last decade and set expectations for the possibility of a more aggressive rate hike cycle throughout 2017(iii). Similarly, home price appreciation accelerated at the end of the year, and income growth is not keeping pace.

With both mortgage rates and home values rising, paying for a home with a mortgage becomes more expensive and requires a larger percentage of income each month. But since mortgage rates have been at historical lows for several years, and recent increases have been relatively small, they have not yet had significant effects on home value appreciation. For buyers of the median U.S. home, valued at $193,800, an increase from 4 percent to 4.25 percent would only increase their monthly mortgage payments by $23(iv).

As rates rise, though, monthly payments for homes will increase, and buyers’ budgets will be more strained. Since 77 percent of buyers use a mortgage to finance their purchase(v), this will affect the majority of buyers, and the market will not be able to sustain the more rapid home value appreciation we have seen in the past few years. Most experts believe there won’t be a significant slowdown in appreciation until rates reach 5.5 percent, which isn’t likely to happen this year. Zillow expects the conventional 30-year fixed mortgage rate to be closer to 4.75 percent by the end of 2017.

“Rising mortgage rates, inventory shortages and demographic shifts will be the main drivers of the U.S. housing economy this year, especially for first-time buyers who will face tougher competition for entry-level homes and often operate with a tighter budget than move-up buyers,” said Zillow Chief Economist Dr. Svenja Gudell. “When you combine higher mortgage rates with increasing home values, mortgage affordability starts to suffer, and buyers will have to spend more and more on their monthly payments. This makes it even more important for buyers to prepare their finances, and shop around to make sure they are getting the best possible rate.”

Another potential effect of rising mortgage rates is their influence on current homeowners, who may decide not to sell their homes to avoid needing a new mortgage at a higher rate, leading to more constrained inventory. More than half of the respondents (56 percent) in this survey said this “mortgage rate lock-in” is already or will have a meaningful impact on the housing market.

Home values rose 6.8 percent in 2016. Overall, the experts surveyed predict home prices will rise 4.6 percent in 2017, then slow to 3 percent annual growth by 2019.

“Compared to their outlook in our previous survey just a few months ago, most of our panelists now expect somewhat stronger home value appreciation this year and next, as tight inventory conditions persist,” said Pulsenomics founder Terry Loebs. “However, longer-term, the consensus still calls for decelerating prices, with the most pessimistic quartile of experts continuing to project negative inflation-adjusted returns for U.S. housing beyond 2017. The specter of rising mortgage rates and other affordability hurdles are clearly impacting these home value projections.”

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. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle.

Zillow is a registered trademark of Zillow, Inc.

About Pulsenomics:

Pulsenomics LLC (www.pulsenomics.com) is an independent research and consulting firm that specializes in data analytics, new product and index development for institutional clients in the financial and real estate arenas. Pulsenomics also designs and manages expert surveys and consumer polls to identify trends and expectations that are relevant to effective business management and monitoring economic health. Pulsenomics LLC is the author of The Home Price Expectations Survey™, The U.S. Housing Confidence Survey, and The U.S. Housing Confidence Index. Pulsenomics®, The Housing Confidence™ Index, and The Housing Confidence™ Survey are trademarks of Pulsenomics LLC.

(i) This edition of the Zillow® Home Price Expectations Survey surveyed 108 experts between January 25 and February 6, 2017. The survey was conducted by Pulsenomics LLC on behalf of Zillow, Inc. and asked the experts about their expectations for the housing market.

(ii) Panelists could select up to three factors for this question

(iii) http://money.cnn.com/2016/12/14/news/economy/federal-reserve-rate-hike-december

(iv) Effect of a 25-basis point increase in mortgage rates, assuming 30-year fixed rate increases from 4 percent to 4.25 percent, with a 20 percent down payment, on the median home value of $193,800.

(v) Zillow Group Report on Consumer Housing Trends

2017 Housing Market Forecast with NAR Chief Economist Lawrence Yun

In November, the National Association of REALTORS held a Facebook Live event with Lawrence Yun, the chief economist and senior vice president of Research at the National Association of REALTORS®, where he discussed what real estate pros can expect in housing in 2017.

Redfin Study: Have Stocks or Housing Recovered More since the Great Recession?

The Median Financial Portfolio had a Higher Rate of Return than the Median Home Value in 20 of the 24 Metros Studied

Seattle, WA – November 14, 2016 (BUSINESS WIRE) The typical stock portfolio offered a higher return on investment than the typical home from January 2010 to May 2016, according to Redfin (www.redfin.com), the next-generation real estate brokerage. In partnership with investment advisory firm FutureAdvisor, Redfin’s latest analysis compared gains in median home prices with returns on a median stock portfolio in 24 major U.S. metro areas.

Redfin

While there were slight variations, a median financial portfolio earned between 63 and 70 percent since 2010 in each of the 24 metros studied, offering a higher rate of return than the housing market in all but four metros. The exceptions were Miami (where home prices increased 73.3%) and three metros in Northern California: San Jose (74.7%), San Francisco (72.7%) and Oakland (67.6%). These were all housing markets where prices skyrocketed and crashed the most during the bubble years.

Other metros, such as Philadelphia (home prices up 11%) and Baltimore (11.4%), have had a more steady recovery. Their residents would have had a much higher return investing in stocks than in the housing market during this time. However, a great deal of value can be derived from a home purchase beyond its price appreciation.

“There are pros and cons to any investment, but real estate is unique in that it offers the advantage of forced savings through the monthly mortgage payment,” said Redfin chief economist Nela Richardson. “The fact that homeowners build an increasing share of equity just by paying their mortgages every month enforces a savings discipline on consumers that is absent in stocks. For this reason, real estate historically has served as the primary engine of wealth creation, particularly for the middle class.”

In most cities, multi-family buildings, condos and co-ops had higher appreciation than single-family homes. The best time to buy in 2010 was December, with home prices appreciating 46 percent since then, compared to just 36.8 percent for homes purchased in June of that year.

To read the full report, complete with additional data, visualizations and analysis, visit here: www.redfin.com

About Redfin Corporation

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 highly accurate automated home-value estimate. 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 $31 billion in home sales and saved customers more than $335 million in fees through 2015.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center.

About FutureAdvisor

FutureAdvisor is an award-winning digital advisory firm based in San Francisco serving clients nationwide. With a focus on collaborating with major financial institutions, FutureAdvisor’s technology helps firms provide financial advice digitally to their customers. Their software actively monitors and manages clients existing 401(k)s, IRAs and taxable accounts from a household-wide, long-term perspective. FutureAdvisor was awarded the World Economic Forum’s Technology Pioneer award in 2015, and Euromoney’s Best American Wealth Management Innovator award in 2014. They were acquired by BlackRock in October 2015 as part of BlackRock Solutions,® which offers risk management, advisory and enterprise investment system services to a broad base of institutional investors. For more information, visit www.futureadvisor.com.

Contacts

Redfin Journalist Services:
Alex Starace
(206) 588-6863
press@redfin.com

U.S. Housing Market Accelerated to Its Fastest Pace on Record in May, According to Redfin

Sales Increased 7 Percent, Driven by Growth in Affordable Metros

Seattle, WA – June 16, 2016 (BUSINESS WIRE) The U.S. housing market accelerated to its fastest pace on record in May, according to Redfin (www.redfin.com), the next-generation real estate brokerage. The typical home went under contract in 42 days, a full week faster than a year earlier, and the lowest median days on market reported since Redfin began tracking this metric in 2009.

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“After almost a decade of undersupplied housing stock, competition is fierce,” said Redfin chief economist Nela Richardson. “What’s new in 2016 is that we’re seeing the intensity of fast sales and bidding wars even in affordable markets like Grand Rapids and Omaha, where the typical home sold within two weeks last month.”

In May, home prices increased a moderate 4.3 percent year over year, down from the 4.8 percent growth rate posted in April. A shift in housing activity from expensive coastal markets toward affordable ones in the middle of the country helped keep a lid on price growth.

Sales surged 7 percent and inventory fell 6.6 percent in May from last year. The pickup in sales was widespread, as nearly a third of the markets Redfin tracks reported growth in the double digits. Affordable markets in the Midwest and the South led the surge in sales.

In Michigan, Detroit and Grand Rapids saw the number of homes sold surge by more than 50 percent from last year.

“We’re seeing an influx of buyers from places like San Francisco, Southern California, Seattle and Washington, D.C. Most new residents are lured by tech jobs and opportunities to work remotely,” said local Redfin agent Kent Selders. “Locals are watching prices rise, and many realize if they don’t buy soon, they’ll miss out while homes are still affordable. The result is incredible demand and rapid sales. Nothing like this has ever happened in Grand Rapids.”

Mortgage rates, which reached three-year lows this spring, are also making an impact on buyers.

“Move-up buyers have specifically noted they are buying now to take advantage of still-low mortgage rates,” said William Porterfield, a Redfin agent in Little Rock, Arkansas, where sales increased 33 percent from a year ago. “They’re focused on buying as much house as possible while interest rates are so low.”

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 five cities: Chicago, Los Angeles, San Francisco, Miami and Washington, D.C.

Redfin chief economist Nela Richardson will host a Facebook Live Video Q&A on the latest housing market updates on Monday, June 20th at 11 AM PT/2 PM ET. Join in on our Facebook page.

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 customer’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 most accurate home-value estimate online, the Redfin Estimate. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commission. Redfin serves more than 83 major metro areas across the U.S. The company has closed more than $31 billion in home sales, and saved customers more than $335 million in fees, and counting.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center.

Contacts:

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