Survey: One in Three Recent Homebuyers Made an Offer Sight-Unseen, Up from Nearly One in Five a Year Ago

Forty-one percent of buyers would be hesitant to move to a place where people have different political views

More than half of Arab, Asian and Latino respondents said immigration orders influenced their home-buying or selling plans, according to a new Redfin-commissioned survey

Seattle, WA – June 28, 2017 (BUSINESS WIRE) Thirty-three percent of people who bought a home in the last year made an offer without first seeing the home in person, according to a May survey of 3,350 homebuyers and sellers commissioned by Redfin (www.redfin.com), the next-generation real estate brokerage. In a similar survey last year, 19 percent of buyers said they had offered sight-unseen. Among recent Millennial homebuyers, 41 percent had done so.

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Five other major findings include:

1. Affordable housing was the most prevalent economic concern, cited by 40 percent of buyers; rising prices caused 21 percent to search in other metro areas where homes cost less.

2. Forty-one percent of buyers would be hesitant to move to a place where people have different political views from their own.

3. Orders restricting immigration influenced the buying and selling plans of 52 percent of Arab, Asian and Latino respondents; 45 percent of minority buyers felt that sellers and their agents may have been less eager to work with them because of their race.

4. Buyers remain resilient amid the prospect of rising mortgage rates. Just 5 percent said they’d cancel their plans if rates surpass 5 percent.

5. Fifty-one percent of buyers and 46 percent of sellers saved money on real estate commissions.

“Millennials are already starting to set trends in the real estate industry,” said Redfin chief economist Nela Richardson. “They are three times more likely than Baby Boomers to make an offer sight-unseen, and they’re more likely than older buyers and sellers to negotiate commission savings. Despite their tech-savvy confidence, politics are seeping into Millennials’ decisions about where to live; nearly half cited hesitations about moving to a place where their neighbors wouldn’t share their views.”

For the full report including more findings, charts and a detailed methodology, visit 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:
Rachel Musiker
(206) 588-6863
press@redfin.com

Redfin to Host Seattle Event for Women in Technology on July 13

Women@Work: A Different Future for Tech Will Showcase Women Leaders from Business and Journalism Discussing their Strategies for Personal Success and Industry-wide Change

Seattle, WA – June 8th, 2017 (BUSINESS WIRE) Redfin (www.redfin.com), the next-generation real estate brokerage, today announced a first-of-its-kind event in Seattle. Women@Work: A Different Future for Tech, will take place on Thursday, July 13, from 1 p.m. to 7 p.m., at 415 Westlake in Seattle. Bridget Frey, Redfin’s chief technology officer, will deliver the keynote. As of October 2016, 30 percent of engineers, product managers and designers at Redfin were women, among the highest in the industry.

Tickets go on sale today, for $20 each. To register, visit our registration page. Space is limited.

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Other prominent women business leaders will participate in a series of fireside chats led by colleagues and technology journalists on topics such as raising startup capital, getting a board position and creating and supporting a diverse culture. Speakers include:

  • Abby Adlerman, CEO and Founder, Boardspan Inc.; and Julie Bornstein, Chief Operating Officer, Stitch Fix – Speaking with Dina Bass, Seattle Bureau Chief and Technology Reporter, Bloomberg News
  • Jennifer Chao, Vice President of Engineering, Redfin – Speaking with Nela Richardson, Chief Economist, Redfin
  • Sarah Guo, Investor, Greylock Partners – Speaking with Rachel Lerman, Technology Reporter, Seattle Times
  • Selina Tobaccowala, Co-Founder, Gixo – Speaking with Monica Nickelsburg, Reporter and Producer, GeekWire

“Women@Work is designed to give women concrete, actionable steps to advance their careers and personal development,” said Bridget Frey. “At the same time, we want to offer a high-level perspective on how to go beyond the individual and change the industry as a whole to be more inclusive and equal for women and other underrepresented groups.”

As Seattle develops into a major technology center, with a business culture that draws on but also stands apart from Silicon Valley, the city has an opportunity to increase the number of women starting and running companies, and designing and developing new products here.

To sign up for Women@Work, click here. More information can be found 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. 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 through 2016.

Contacts

Redfin Journalist Services:
Jon Whitely, 206-876-1074
press@redfin.com

Redfin Names the Most Affordable Beach Towns for Real Estate

Atlantic City, New Jersey Earns the Number One Spot; Seven Florida Cities Make the Top 10

Seattle, WA – June 7th, 2017 (BUSINESS WIRE) Atlantic City is the most affordable U.S. city to buy a beach home, according to Redfin (www.redfin.com), the next-generation real estate brokerage. To determine the most affordable beach towns, Redfin looked at coastal cities with populations of at least 1,000 people and identified those where at least 3 percent of the vacant units were flagged by the Census as being for seasonal use to define “vacation cities.”

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Atlantic City has a median home sale price of just $52,250—plus amenities and entertainment that make it a great place for vacation-goers.

“Atlantic City and its surrounding beach towns have so much to offer someone looking for a vacation home,” said Redfin real estate agent Kimberly Mogan. “Not only does Atlantic City boast some of the finest beaches on the east coast, including an iconic boardwalk, the town offers glitzy nightlife, beautiful casinos, restaurants and an impressive lineup of year-round events. It’s a perfect home away from home for someone who thrives in an action-packed city.”

Seven of the top 15 affordable beach towns were in Florida, with Miami, Clearwater, West Palm Beach and Daytona Beach all breaking the top five.

The most affordable beach towns for real estate are:

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To read the full report, complete with graphics and insight from real estate agents 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. 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 through 2016.

Contacts

Redfin Journalist Services:
Natalie Schwab
(206) 588-6863
press@redfin.com

Redfin Study: Middle-Class African-American and Hispanic Families Virtually Priced out of Homeownership in Hot West Coast Markets

Fewer than five percent of homes for sale in Denver, Los Angeles, Portland, San Francisco, San Diego and Phoenix were affordable on median African-American and Hispanic household incomes in 2016

Denver had the smallest racial affordability gap; Minneapolis had the largest

St. Louis was the only large metro to post gains in affordability for typical African-American and Hispanic families

Seattle, WA – June 01, 2017 (BUSINESS WIRE) In 2016, just 18 percent of homes for sale in the 30 largest U.S. metros were affordable for middle-class Hispanic families and 14 percent were affordable for African-American families, according to a new study by Redfin (www.redfin.com), the next-generation real estate brokerage. Both rates were down 11 percentage points from 2012. This is compared to 30 percent affordable for those earning the median income for white households, down 12 percentage points since 2012.

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Housing affordability declined over the same four-year period for the middle class as a whole, as home prices increased by 26 percent and household incomes edged up by less than 2 percent nationally. In 2012, 44 percent of homes for sale were affordable on a middle-class income; that share fell to 32 percent in 2016.

The study also found that in 2016, middle-class African-American and Hispanic families were virtually priced out of homeownership in Denver, Los Angeles, Portland, San Francisco, San Diego and Phoenix. In each of those metros, fewer than 5 percent of homes on the market were affordable on the median household incomes for African Americans and Latinos.

Still, Denver was home to the smallest racial gap in housing affordability in 2016. Less than 2 percent of homes for sale there were affordable to families earning the median income for African-American and Hispanic households, compared to just 8.3 percent for families earning the median income for white households. The racial affordability gap was largest in Minneapolis, where the typical white family could afford 66 percent of the homes for sale, compared to 5.2 percent and 24.8 percent for families earning the median income for African-American and Hispanic households.

Among the 30 largest metros, Las Vegas had the largest declines in affordability for families making the median African American (-26.5 points) or Hispanic (-24.6 points) household incomes from 2012 to 2016.

Also during this period, metros known for their relative affordability, like Atlanta, Tampa and Kansas City, saw double-digit declines in the share of listings that were affordable on African American and Hispanic median incomes.

St. Louis was the only metro that saw increases in affordability for both Hispanic (+5.4 points) and African-American families (+4.3 points). Interestingly, St. Louis was also the only metro where overall middle-class affordability, including for median-income white households, did not change significantly over this time period.

The Upshot

“American cities are at risk of losing both the economic and racial diversity that has been their hallmark,” said Redfin chief economist Nela Richardson. “Middle-class homebuyers are being priced out of America’s largest cities at an alarming rate, as the home affordability gap gets wider. Given the significantly lower rates of homeownership among African-American and Hispanic families, the reduction in affordable listings has even more dire consequences for income inequality when broken out by race.”

But there are solutions, according to Richardson.

“For one, federal and state governments can do much more to be influential in local housing policy,” said Richardson. “That’s where the crisis starts–at the neighborhood level–when people vote against inclusionary zoning policies, making it difficult or impossible to build higher-density, affordable housing in a community. Federal and state governments can reward communities that change to inclusionary zoning practices by offering them infrastructure investments to improve the neighborhoods. That way, inclusionary zoning is more appealing to longtime residents.”

To read the full report with a complete breakdown of affordability changes by race, animated data visualizations and a link to the original data spreadsheet, please visit: www.redfin.com.

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. 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 through 2016.

Contacts

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

Walk Score Ranks the Most Walkable Cities of 2017

New York remains the most walkable; Miami overtakes Philadelphia for fourth place

Seattle, WA – May 31, 2017 (BUSINESS WIRE) In the Walk Score Ranking of U.S. Cities table, 10 should read: Long Beach (instead of Baltimore).

Walk Score® (www.walkscore.com), a Redfin company, today released its 2017 ranking of the most walkable U.S. cities with populations over 300,000. New York, San Francisco and Boston remain the top three most walkable cities in the nation, while Miami leapfrogged Philadelphia to become the fourth most walkable city since last year’s ranking.

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Walk Score measures the walkability of a location based on its distance from amenities, density of population, block length and pedestrian friendliness. As in previous years, all of the top 10 cities saw an increase in their respective Walk Score ratings, indicating that the nation’s most walkable cities are becoming even more walkable. Of the top 50 most walkable cities only one, Omaha, Nebraska, saw its Walk Score decline.

Miami’s steady increase in walkability can be attributed to builders and city officials embracing the idea of densely populated neighborhoods.

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“Developers are seeing an overall trend in people who desire to live, work and play within the same neighborhood,” said Aaron Drucker, a Redfin real estate agent in Miami. “Developers have focused on popular, urban neighborhoods like Wynwood, Midtown, Brickell, South Beach and Coconut Grove, constructing high-rises, multi-family homes and condominiums. This has increased population, creating density that didn’t exist in Miami years ago.”

Despite being edged out of the fourth spot by Miami, Philadelphia continues to improve walkability. Last year, the Pennsylvania hub held a healthy score of 78.3 compared to this year’s score of 79.0.

To read the full report, complete with a ranking of the 50 most walkable U.S. cities, 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. 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 through 2016.

Contacts

Redfin Journalist Services:
Jon Whitely
(540) 525-8229
press@redfin.com

Redfin Housing Demand Index Ticks Back up as Prime Selling Season Commences

The number of Redfin customers requesting tours rebounded in April while the number of buyers making offers posted modest growth

Seattle, WA – May 30th, 2017 (BUSINESS WIRE) The Redfin Housing Demand Index increased 9.2 percent from March to a seasonally adjusted level of 121 in April, according to Redfin (www.redfin.com), the next-generation real estate brokerage.

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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.

Although it has remained above its historical average all year, the Demand Index has shown strong variability, steadily decreasing from January to March before picking back up in April.

Compared to March, the seasonally adjusted number of buyers requesting tours was up 12.1 percent in April, and the seasonally adjusted number of buyers writing offers was up 6.9 percent. The growth in demand is in stark contrast with the ongoing shortage of inventory. Across the 15 metros covered by the Demand Index, there were 13.1 percent fewer homes for sale than the previous March, marking the 23rd consecutive month of year-over-year inventory declines.

Demand has been moving in fits and starts over the last six months, but is still generally above the 2013-2015 average activity level. With prices exceeding their 2006 peak and inventory at the lowest point in recent years, the question becomes whether this adverse environment will start to cool the market.

“We know two things heading into the summer selling season. One, home prices continue to leap forward. Two, homebuyers continue to jump into the market,” said Redfin chief economist Nela Richardson. “A pop of new listings only encourages more homebuyers to barge their way into this crowded and competitive, low-inventory market in order to take advantage of still-low mortgage rates. For these reasons, we expect prices to continue to grow above their three-year average for the remainder of the year.”

Seattle on Track to Become the Metro with the Least Inventory

Seattle is currently the third-most constrained for inventory, following Oakland and San Francisco, but has the largest population of the three metros. Seattle posted the largest year-over-year decrease in inventory, down 35 percent from last April. In the same period, the number of Redfin customers making offers climbed by 36.9 percent, an indication that the market is more competitive for buyers this year than it was last year.

“There’s no indication that this market is going to see a drastic increase in supply or a drop in demand, so waiting isn’t an option for a serious buyer,” said Redfin Seattle agent Kyle Moss. “People intent on purchasing this season should be discerning and focus on the one or two criteria that are most important to them, like commute time and/or schools. From there, carve out a list of homes that meet your qualifications and work alongside an agent who has experience winning offers in competitive situations to build and execute a competitive strategy that fits your budget.”

For additional national and local data and analysis, including metro-level charts and insights from real estate agents, please visit redfin.com.

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. 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 through 2016.

Contacts

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