Tom Ferry Discusses 12 Ways to Solve Your Real Estate Low Inventory Crisis

On this episode of the #TomFerryShow, Tom discusses the top 12 lead generation sources for real estate success.

Find out the top strategies top producing coaching members are using to generate real estate leads. The answers might surprise you…

Sales Up Despite Years of Rising Prices, Falling Inventory

December RE/MAX National Housing Report on MLS Data from 54 Metro Areas

Denver, CO – Dec. 15, 2017 (PRNewswire) November became the sixth month of 2017 to post an increase in year-over-year home sales, bucking prolonged trends of home price increases and inventory declines, according to the December RE/MAX National Housing Report. To access the housing report infographic, visit: rem.ax/2cYFT50.

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The sales increase of 1.1% came on the strength of increased transaction closings in 36 of the report’s 54 markets. At the same time, buyers felt increasing headwinds as the Median Sales Price rose to $227,500 and marked the 20th consecutive month of year-over-year home price increases. In fact, the Median Sales Price has increased year-over-year in 69 of the last 70 months dating back to February 2012.

November’s inventory decline of 14.5% extended the streak of consecutive months of fewer homes on the market to 108. The current streak started nine years ago, in November 2008, shortly after the RE/MAX National Housing Report was introduced.

Setting new report lows for November were Days on Market at 54 and Months Supply of Inventory at 3.6.

“The end of the year is typically a slower selling season with low inventory, but our numbers are telling a different story,” said Adam Contos, RE/MAX Co-CEO. “We don’t see any sign of home buyers slowing down their house hunting. In fact, many are taking advantage of lower competition for available homes in the ‘slow season.'”

Contos added that, while consumer confidence is up and unemployment remains low, new home starts continue to lag because of material costs and a labor shortage. “Until we begin to see new homes being built, we won’t see much growth in available homes on the market,” he said.

Closed Transactions
Of the 54 metro areas surveyed in November 2017, the overall average number of home sales decreased 7.3% compared to October 2017 but increased 1.1% compared to November 2016. Thirty-six of the 54 metro areas experienced an increase in sales year-over-year, including Trenton, NJ, +21.3%, Augusta, ME, +14.5%, Honolulu, HI, +14.1%, and Manchester, NH, +14.0%.

Median Sales Price – Median of 54 metro median prices
In November 2017, the median of all 54 metro Median Sales Prices was $227,500, up 1.7% from October 2017 and up 3.7% from November 2016. Only five metro areas saw a year-over-year decrease in Median Sales Price, including Anchorage, AK, -5.3%, Trenton, NJ, -4.2%, and Honolulu, HI, -3.4%. Nine metro areas increased year-over-year by double-digit percentages, with the largest increases seen in San Francisco, CA, +13.8%, Cleveland, OH, +12.9%, Orlando, FL, +11.6%, and Seattle, WA, +11.4%.

Days on Market – Average of 54 metro areas
The average Days on Market for homes sold in November 2017 was 54, up three days from the average in October 2017, and down five days from the November 2016 average. The four metro areas with the lowest Days on Market were San Francisco, CA, at 25, Omaha, NE, at 27, Seattle, WA, at 29, and Nashville, TN, at 30. The highest Days on Market averages were in Augusta, ME, at 116, and Miami, FL, at 86. 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 54 metro areas
The number of homes for sale in November 2017 was down 9.2% from October 2017, and down 14.5% from November 2016. Based on the rate of home sales in November, the Months Supply of Inventory increased to 3.6 from 3.3 in October 2017, but decreased compared to the 4.0 of November 2016. A 6 months supply indicates a market balanced equally between buyers and sellers. In November 2017, 49 of the 54 metro areas surveyed reported a months supply at or less than 6, which is typically considered a seller’s market. The metro areas that saw a months supply above 6.0, typically considered a buyer’s market, were Augusta, ME, at 8.4, Miami, FL, at 7.6, and Fargo, ND, at 6.5. The markets with the lowest Months Supply of Inventory continued to be in the West, with San Francisco, CA, at 1.0, Seattle, WA, at 1.3, and Denver, CO, at 1.4.

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 115,000 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 $157 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.

Wildfires Threaten SoCal Housing Markets Already Struggling with Unaffordability and Low Inventory, According to Redfin

  • National home prices rose 7.8 percent in November as inventory declined 12.8 percent
  • Pace and competition in housing market continued to accelerate in November after 26 months of inventory declines
  • Sonoma County housing market felt impact of October wildfires as inventory plunged 47 percent
  • In Ventura and Santa Barbara counties where wildfires are threatening homes, inventory has declined by double-digits for three months straight and fires could worsen the inventory shortage
  • San Jose prices climbed 23 percent and competition reached new heights in November

Seattle, WA – December 14, 2017 (BUSINESS WIRE) (NASDAQ: RDFN) — Home price growth was strong in November, up 7.8 percent from last year, according to Redfin (www.redfin.com), the next-generation real estate brokerage. The median sale price was $292,000 across the markets Redfin serves. Sales were down 1.3 percent. The number of homes for sale declined 12.8 percent compared to a year ago, marking 26 months in a row of inventory declines.

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“Overall, 2017 has been an uneven year for home sales. The year started out strong, but a combination of low inventory and weather events overtook sales growth; sales have been flat to declining in six out of the past 11 months,” said Redfin chief economist Nela Richardson. “The good news is markets have been quick to recover from severe weather events, even as challenges remain. For example, Houston home sales were up 4.3 percent in November from a year ago, and Tampa sales were up 6.1 percent. We are hopeful that Southern California markets show the same level of resilience in the aftermath of wildfires there.”

The number of homes newly listed for sale in November increased a modest 1.1 percent. Any increase in new listings is welcome news for buyers, however, the number of homes put on the market in November wasn’t enough to put a dent in the long-standing inventory shortage. There were 3.1 months of supply in November, far below the six months of supply that represent a market balanced between buyers and sellers. Nationally, the typical home spent 46 days on the market, four days fewer than last November.

2017 has been the fastest market on record and if current trends continue, Redfin predicts 2018 will be even faster.

Wildfires Threaten California Communities Already Facing Inventory Shortages

In parts of Los Angeles, Ventura and Santa Barbara counties, hundreds of homes have been destroyed by wildfires and hundreds more are under threat from fires that remain uncontained. While it is too early to know how many families and homes will be impacted, we do know these counties are already facing a shortage of homes for sale. Families who are displaced by the wildfires will find it challenging to find another home for sale nearby.

In Ventura County in November, inventory was down 17.6 percent and prices grew 9.8 percent year over year to a median of $600,000. In Santa Barbara County, inventory was down 23.3 percent and prices grew 6.8 percent year over year to a median of $575,000. The fires will cause further stress in an already tight housing market.

“The fires have had a big impact on the people and communities in and around Ventura, Ojai and Santa Barbara,” said Redfin agent John Venti. “Our already low inventory levels are likely to take a beating in the coming months not only from the loss of homes but also the disruption of life and business in the area. A few prospective home sellers have texted me as they were being evacuated to cancel our listing consultation appointments. But these fires, devastating as they are, are temporary. I’m optimistic that people will resume their holiday festivities and business as usual as soon as the fires are extinguished and the air clears.”

The impact of the October wildfires in Northern California was seen in November market data. In Santa Rosa, one of the hardest hit cities, inventory fell 46.6 percent in November from a year prior, a 27.8 percent drop from October. Across Sonoma County, inventory declined 31.2 percent year over year and prices rose 15.2 percent to a median of $633,000. The typical home in Sonoma County sold for 101.6 percent of the asking price, the highest sale-to-list price ratio since 2013. This spike in competition is unusual for the November market and likely related to the fires.

Home sales were up 8 percent year over year in Santa Rosa and 6.4 percent in Sonoma County in November. December sales in the affected areas may decline as a result of the fire activity.

Other November Highlights

Competition

  • The most competitive market in November was San Jose, CA where 75.9% of homes sold above list price, followed by 73.1% in San Francisco, CA, 66.0% in Oakland, CA, 43.5% in Seattle, WA, and 42.0% in Tacoma, WA.
  • The average sale-to-list price ratio in San Jose was 107.9 percent, the highest on record in that market since Redfin began tracking this data in 2009.
  • San Jose, CA and Seattle, WA were the fastest markets at 12 median days on market, followed by Oakland, CA (14), Boston, MA (15) and San Francisco, CA (17).

Prices

  • San Jose, CA had the nation’s highest price growth, rising 23% since last year to $1,076,000. San Francisco, CA had the second highest growth at 18.5% year-over-year price growth, followed by Cleveland, OH (15.9%), Seattle, WA (15.4%), and Salt Lake City, UT (13%).
  • Honolulu, HI was the only metro with a price decline in November falling 3.2%.

Sales

  • 4 out of 73 metros saw sales surge by double digits from last year. Richmond, VA led the nation in year-over-year sales growth, up 14.6%, followed by Honolulu, HI, up 14.2%. Philadelphia, PA rounded out the top three with sales up 10.8% from a year ago.
  • Allentown, PA saw the largest decline in sales since last year, falling 13.3%. Home sales in Grand Rapids, MI and Rochester, NY declined by 13.1% and 11.0%, respectively.

Inventory

  • San Jose, CA had the largest decrease in overall inventory, falling 50.2% since last November. Atlanta, GA (-32.1%), Buffalo, NY (-30.4%), and Oakland, CA (-29.1%) also saw far fewer homes available on the market than a year ago.
  • Salt Lake City, UT had the highest increase in the number of homes for sale, up 40.3% year over year, followed by Baton Rouge, LA (10.9%) and Austin, TX (9.1%).

To read the full report, complete with data and charts, please visit the following link: https://www.redfin.com/blog/2017/12/market-tracker-november-2017.html

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

Trulia: 2018 May See Cooling Of Pricey Coastal Markets And Continued Rise In Homeownership Rate Despite For-Sale Inventory Shortage

Trulia Identifies 10 Housing Markets to Watch: Grand Rapids, Mich., Nashville, Tenn., Raleigh, N.C., El Paso, Texas, San Antonio, Texas, Fort Worth, Texas, Austin, Texas, Columbus, Ohio, Madison, Wis. and Cincinnati, Ohio

San Francisco – Dec. 7, 2017 (PRNewswire) Trulia®, a home and neighborhood resource for homebuyers and renters, today released its 2018 Housing Outlook Report. Heading into the new year, Trulia Chief Economist Ralph McLaughlin shares his predictions for the housing market in 2018:

trulia-logo

Tax Plans May Help Cool Expensive Coastal Markets: As Washington nears a tax overhaul that shifts burdens for homeowners, the luxury market and housing markets in expensive, high-tax states in the Pacific West and Northeast might see cooling. This could include slowing home price growth, new construction and existing home sales.

Homeownership Rate Will Continue to Climb: 2017 saw the first significant increase in the homeownership rate in over 10 years. Meanwhile, the number of owner-occupied households grew faster than renter households for three consecutive quarters—a first in 12 years as the number of renter households fell for two consecutive quarters. As Gen Xers transition back from renting to owning and more millennials become homeowners, the homeownership rate will continue to increase as it has trended in 2017, albeit slowly.

Trulia’s Top 10 Housing Markets Poised for Growth
Trulia identified 10 housing markets to watch in 2018 among the 100 biggest markets, based on five key metrics: strong job growth over the past year, low vacancy rates, high starter-home affordability, more inbound than outbound home searches on Trulia and a large share of people under age 35 in the population as a measure of prospective first-time homebuyers.

1. Grand Rapids, Mich.
2. Nashville, Tenn.
3. Raleigh, N.C.
4. El Paso, Texas
5. San Antonio, Texas
6. Fort Worth, Texas
7. Austin, Texas
8. Columbus, Ohio
9. Madison, Wis.
10. Cincinnati, Ohio

Key Findings from Trulia’s American Dream Survey
The report also includes findings from Trulia’s annual survey of American sentiment on homeownership in the year ahead, which was conducted online by Harris Poll of more than 2,000 Americans age 18 and older.

Rising Home Prices Becoming Bigger Obstacle, Many Plan to Buy After 2020
One in four Americans (25%) believe buying a home in 2018 will be better than in 2017—the same as those who say it will be worse (also 25% of Americans). One possible reason for the split sentiment: 40% of American renters who desire to buy a home say rising home prices is their biggest obstacle to homeownership—the highest level reported since 2013 when only 22% said the same. Perhaps as a result, only 10% of Americans plan to buy a home as their primary residence in the next 12 months while 41% plan to wait at least two years.

Rising Optimism for Home Selling Unlikely to Ease Tight Inventory Immediately
Nearly one in three Americans (31%) think 2018 will be a better year for selling a home than 2017, versus 14% who think it will be worse—a 17-percentage point differential, which is the highest differential since 2014 (20%). This spells good news for the current inventory crunch, but relief may not come for a few years as only 6% of homeowners plan to sell their home in 2018.

73% of Millennials Aspire to be Homeowners, But Saving Money Remains Key Obstacle
Today, 73% of Americans aged 18-34 say homeownership is part of their personal American Dream; however, this majority is below 2015’s level of 80% expressing this same sentiment. Yet for many millennials, their homebuying plans aren’t happening soon: 65% who plan to buy a home one day said they don’t plan to do so until at least 2020. Why are they waiting? Perhaps lack of funds—saving for a down payment is one of the greatest obstacles to homeownership (66%), along with rising home prices (47%) and qualifying for a mortgage (37%) for millennial renters who want to buy a home.

Natural Disasters Causing Homeowners, Homebuyers to Rethink Where They Live
After 2017’s array of floods, hurricanes, wildfires, and other natural disasters, 39% of Americans say they are more concerned about the potential threat of natural disasters affecting their homes, with a higher proportion of those in the hurricane- and flood-ravaged South expressing concerns (43%). Only 5% of Americans are less concerned about this potential threat. More tellingly, a majority of Americans said the potential for the aforementioned natural disasters – floods (72%), hurricanes (61%) and wildfires (58%) – would influence their home searches if they were looking to purchase a home.

Quotes from Trulia’s Chief Economist Ralph McLaughlin:

“Homeownership will continue its comeback story in 2018 as Gen Xers who were hard-hit during the Great Recession become homeowners again, and as more millennials buy homes for the first time. But homebuyers won’t be without challenges as they’ll still face low inventory, slow wage growth and expensive starter homes. For millennials, they have the added hurdle of saving enough money to make a down payment and make competitive offers amid rising home prices.”

“Amid 2017’s slew of natural disasters, future homebuyers may rethink where they live. But the desire to become a homeowner remains strong enough so these concerns are only likely to deter demand in the most vulnerable of locales.”

Survey Methodology
This survey was conducted online within the United States between November 9th and 13th, 2017 among 2,188 adults (aged 18 and older) by Harris Poll on behalf of Trulia. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology for this survey or previous surveys, including weighting variables and subgroup sample sizes, please contact pr@trulia.com.

About Trulia
Trulia®is a vibrant home shopping marketplace, focused on giving homebuyers, sellers, and renters the information they need to make better decisions. On mobile and the Web, Trulia provides house hunters with insights and unique information about properties, neighborhoods, and real estate agents. Additionally, Trulia offers data and information about schools, crimes, commute times, and the real estate market.

Launched in 2005, Trulia is based in San Francisco and is owned and operated by Zillow Group, Inc. (NASDAQ: Z and ZG).

Trulia is a registered trademark of Trulia, LLC.

MEDIA CONTACT:

Debbie Baratz
pr@trulia.com
(415) 757-2299

Existing-Home Sales to Grow 3.7 Percent in 2018, but Inventory Shortages and Tax Reform Effects Loom

Chicago, IL – November 3rd, 2017 (PRNewswire) The steadily improving U.S economy, sustained job growth, and rising confidence that now is a good time to buy a home should pave the way for an increase in existing-home sales in 2018, but continued supply shortages, and passage of a tax bill that disincentives homeownership, threaten to handcuff what should be stronger activity. That is according to a residential housing and economic forecast session here at the 2017 REALTORS® Conference & Expo.

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Lawrence Yun, chief economist at the National Association of Realtors®, presented his 2018 housing and economic forecast and was joined onstage by Ken Rosen, chairman of Rosen Consulting Group and UC Berkeley’s Fisher Center for Real Estate and Urban Economics. Rosen addressed the primary causes for the depressed U.S. homeownership rate and shared his proposed ideas, highlighted in a white paper released earlier today, on how to ensure more creditworthy households can enjoy the personal and financial benefits of owning a home.

“Despite considerable demand all year, pending sales have lost a step in recent months because low supply is pushing prices higher and making homebuying less affordable in several parts of the country,” said Yun.

With a few months of data remaining in 2017, Yun estimates that existing-home sales will finish at a pace of 5.47 million – the best since 2006 (6.47 million), but only a modest improvement (0.4 percent) from 2016 (5.45 million). In 2018, sales are forecast to expand 3.7 percent to 5.67 million. The national median existing-home price is expected to rise to around 5.5 percent this year and next year.

Yun and Rosen, however, both cautioned that the House Ways and Means Committee’s release yesterday of its legislative proposal to overhaul the American tax code could very well affect home sales and prices next year and beyond. The tax bill in its current form is a direct tax hike on homeowners and nullifies the homeownership incentive for all but the top 5 percent of tax filers. Earlier this year, NAR released a full analysis of the House Republican blueprint for reform, finding that it could negatively affect home values by about 10 percent and raise taxes on middle-class homeowners by an average of $815.

Much of Yun and Rosen’s presentation focused on the reasons why many would-be buyers are not reaching the market. NAR’s 2017 Profile of Home Buyers and Sellers, released earlier this week, revealed that first-time buyers were only 34 percent of sales over the past year, which was the fourth lowest since the survey began 36 years ago.

Rosen, presenting findings from Rosen Consulting Group’s three white papers released this year on the depressed homeownership rate, said a perverse mix of affordability challenges, student loan debt, tight credit conditions and housing supply shortages continue to hamper many households from owning a home. This is despite extremely low mortgage rates that should be fostering the biggest for-sale housing boom in American history.

“Ownership rates are currently below their peak across the younger age groups and in cities that have seen sharp price increases, and it’s not a good thing,” said Rosen, “A higher rate of homeownership makes sense. It is so important to the financial health of the economy. Homeownership helps households accumulate wealth over time, reduces inequality, increases investments in communities and boosts economic growth.”

According to Yun, the biggest impediment to sales right now and into next year is the massive shortage of supply in relation to overall demand. The lagging pace of new home construction in recent years is further creating a logjam in housing turnover. Without enough new homes on the market, homeowners are typically staying put for a longer period of time before selling, typically 10 years, which is keeping inventory low and hurting affordability.

“The lack of inventory has pushed up home prices by 48 percent from the low point in 2011, while wage growth over the same period has been only 15 percent,” said Yun. “Despite improving confidence this year from renters that now is a good time to buy a home, the inability for them to do so is causing them to miss out on the significant wealth gains that homeowners have benefitted from through rising home values.”

Pointing to Los Angeles and the Bay Area as examples of areas with significant affordability constraints, Yun said unhealthy levels of price appreciation are also occurring in many other markets with strong job growth, but without the commensurate rise in housing starts. As a result, the ability to buy a home has become extremely difficult for even those with well-paying jobs and is forcing households to flee expensive areas in the West and Mountain regions for more affordable parts of the country. This in turn could affect future job growth in these areas and ultimately soften housing demand.

Although Yun forecasts single-family housing starts to jump 9.4 percent to 950,000 next year, this is still below the 50-year average of around 1.2 million starts. New single-family home sales are likely to total 606,000 this year and rise to around 690,000 in 2018.

Rosen agreed with Yun’s remarks that a significant boost in residential construction is needed to improve affordability and increase sales. He explained that the white paper released today, “Rebuilding the American Dream: Strategies to Sustainably Increase Homeownership,” identifies 25 ideas to bolster homeownership. They include: overriding restrictive zoning laws, promoting modular construction [to increase supply], a down payment savings program, tackling the burden of student debt, and a nationwide counseling program for homeowners who previously experienced foreclosure and may be hesitant to consider buying a home again, among others.

“A willingness to embrace new ideas will go a long way towards easing the constraints of low supply, student debt and weaker affordability that are currently suppressing homeownership,” said Rosen.

After two consecutive quarters of economic growth of 3 percent, Yun expects GDP to come in around 2.2 percent for the year and to expand to 2.7 percent overall in 2018, as long as job growth remains solid and residential construction picks up.

With the Federal Reserve unwinding its balance sheet and continuing its plan to slowly raise short-term rates, Yun believes mortgage rates will gradually climb towards 4.50 percent by the end of 2018.

“An overwhelming majority of renters want to own a home in the future and believe it is part of their American Dream,” said Yun. “Assuming there are no changes to the tax code that hurt homeownership, the gradually expanding economy and continued job creation should set the stage for a more meaningful increase in home sales in 2018.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at www.nar.realtor. This and other news releases are posted in the newsroom in the “About NAR” tab.

Redfin Housing Demand Index Virtually Flat from July to August Due to Continued Inventory Shortage

The number of Redfin customers touring and writing offers was basically even from July to August, but increased year over year

Seattle, WA – September 28th 2017 (BUSINESS WIRE) (NASDAQ:RDFN) — The Redfin Housing Demand Index remained virtually flat, up slightly from 126 in July to 127 in August, according to Redfin (www.redfin.com), the next-generation real estate brokerage. Still, the Demand Index increased 27.7 percent year over year. The Demand Index is adjusted for Redfin’s market share growth.

Redfin Logo

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.

Across the 15 metros covered by the Demand Index, there were 13.9 percent fewer homes for sale in August than there were a year prior, and there was a 2.7 percent decline in new listings. August marked the 27th consecutive month of year-over-year inventory declines in these markets.

“High consumer confidence and low interest rates have powered homebuyer demand, but too-low inventory has constrained home sales all year,” said Redfin chief economist Nela Richardson. “The Federal Reserve is now setting the stage for a slow, steady increase in mortgage rates in October by beginning to sell its mortgage portfolio. Fall buyers are likely to face slightly higher financing costs in addition to strong price growth.”

The seasonally adjusted number of buyers requesting home tours and writing offers remained flat from July to August, decreasing 0.8 percent and increasing 0.1 percent respectively. Compared to last year, 42.3 percent more buyers requested tours in August and 8.2 percent more wrote offers.

At the metro level, Oakland had the largest Demand Index increase in August, up 29 percent from July and 43 percent year over year. Inventory was down 30 percent year over year and new listings fell 5.3 percent.

“August has traditionally been one of the slowest months in Oakland for homebuyer activity as people go on vacation and finish up their family activities before the kids head back to school,” said Redfin Oakland agent Tom Hendershot. “This year, August demand has really ramped up compared to July, and we expect September to be a very active month as long as more new inventory hits the market.”

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.

Contacts

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