Redfin: Homes Sold Faster Than Ever in April

Home prices gained as sales were constrained by a double-digit inventory dip

The typical home that sold last month went under contract in just 40 days, and the market is likely to accelerate further

Seattle, WA – May 18th 2017 (Red Fin) U.S. home prices rose 6.2 percent to a median sale price of $280,000 in April, according to Redfin (www.redfin.com), the next-generation real estate brokerage. Home sales inched up 1.2 percent over last year, constrained by a shortage in the supply of homes. The number of homes for sale fell 13.3 percent, the steepest decline in four years, marking 19 straight months of annual declines.

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The typical home went under contract in 40 days, 10 days faster than a year earlier, making April the fastest month on record since Redfin began tracking the market in 2010. One in five homes (22.2%) that sold in April went under contract within two weeks of their debut. One in four (24.7%) homes sold above their list price, which is the highest percentage Redfin has recorded.
“When it comes to the housing market breaking records, I’m beginning to sound like a broken record,” said Nela Richardson, Redfin chief economist. “The market tends to accelerate through June so I wouldn’t be surprised if new records for speed and competition are reached in May and June given what we are seeing now. The only record this market can’t break is sales. You need more inventory for that!”

Regional April Highlights

Competition

  • Denver, CO was the fastest market, with nearly half of all homes going under contract in just 6 days, down from 11 days a year earlier. Seattle, WA was the next fastest market with 7 median days on market, followed by Portland, OR and Tacoma, WA at 10 days.
  • The most competitive market in April was San Jose, CA where 75.4% of homes sold above list price, followed by 69.5% in San Francisco, CA, 69.4% in Oakland, CA, 62.1% in Seattle, WA, and 52.4% in Tacoma, WA. In sharp contrast, 0.0% of homes in Kansas City, MO sold above the list price.

Prices

  • Milwaukee, WI had the nation’s highest price growth, up 18.2% since last year to $208,000. Greenville, SC had the second highest price growth at 17.6% year-over-year, followed by Seattle, WA (17.4%), Deltona, FL (14.8%), and Tampa, FL (13.8%).
  • 2 metros saw price declines in April: Baton Rouge, LA (-1.2%), and Greensboro, NC (-1%).

Sales

  • 18 out of 90 metros saw sales surge by double digits from last year. Poughkeepsie, NY led the nation in year-over-year sales growth, up 36%, followed by Baltimore, MD, up 31%. Camden, NJ rounded out the top three with sales up 28% from a year ago.
  • Home sales in Buffalo, NY and Ogden, UT declined by 19.4% and 19.3%, respectively.
    • Inventory

      • Rochester, NY had the largest decrease in overall inventory, falling 37.8% since last April. Seattle, WA (-35.3%), Buffalo, NY (-32.8%), and Rochester, NH (-30.8%) also saw far fewer homes available on the market than a year ago.
      • Fort Myers, FL had the highest increase in the number of homes for sale, up 29.2% year over year, followed by Knoxville, TN (19.7%) and Austin, TX (12.4%).

      To read the full report, complete with data and charts, please visit the following link: 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:
      Alina Ptaszynski
      (206) 588-6863
      press@redfin.com

Solar Power Pays Off in These 10 Midwestern Cities

Redfin Teamed Up with Sun Number to Rank the 10 Midwestern Cities With the Most Solar Potential

Seattle, WA – May 1st, 2017 (BUSINESS WIRE) The Midwestern region of the United States may not seem like an ideal area for solar power, but there are actually quite a few cities within this region where it would be wise to invest in solar panels. Redfin (www.redfin.com), the next-generation real estate brokerage, teamed up with Sun Number, a U.S. Dept. of Energy SunShot-funded startup that has developed a patented, automated process for analyzing the solar potential of rooftops, to find out which of the largest Midwestern cities have the most solar power potential. The company, which assigns cities a Sun Number based on a scale of 1 to 100, looked at the 10 largest Midwestern cities to find each location’s Sun Number. Redfin then looked at those areas to find the price of homes mentioning “solar panels” in their listing description and compared the prices of homes not mentioning solar panels.

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“Buying a solar energy system will likely increase your home’s value,” says the Department of Energy. “A recent study found that solar panels are viewed as upgrades, just like a renovated kitchen or a finished basement, and homebuyers across the country have been willing to pay a premium of about $15,000 for a home with an average-sized solar array. Additionally, there is evidence that homes with solar panels sell faster than those without.”

Here is the ranking for the 10 largest U.S. cities in the Midwest region with the highest potential for solar power:

1. Columbus, Ohio

2. Chicago, Illinois

3. Madison, Wisconsin

4. Dayton, Ohio

5. Cincinnati, Ohio

6. Milwaukee, Wisconsin

7. Indianapolis, Indiana

8. Cleveland, Ohio

9. Detroit, Michigan

10. Minneapolis/St. Paul, Minnesota

To read the full report, complete with more information on each city, 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.

View source version on businesswire.com.

Contacts

Redfin Journalist Services:
Alanna Finn
(917) 822-5087
press@redfin.com

Redfin Survey: One in Four Home Sellers Report Having No Concerns About Selling

Sellers are Less Likely to be Worried about Finding a Replacement Home Going into Spring

Seattle, WA – May 1, 2017 (redfin.com) One in four home sellers said they have no concerns about selling this spring, according to an April survey of nearly 900 homeowners conducted by Redfin (www.redfin.com), the next-generation real estate brokerage.

The 179 survey respondents who indicated that their home was currently listed for sale or that they were planning to list in the coming year (considered “home sellers” for reporting purposes) ranked “none” as their most common response when asked to select their top three concerns about selling. In a similar survey conducted in January, this response was the eighth-most common, with 16 percent of sellers choosing it.

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Last month, 18 percent of sellers expressed concern about finding another home to buy, down from 24 percent in January.

“Despite strong sentiment among current home sellers, the numbers show prospective sellers have been very slow to list their homes. New listings dropped 2.3 percent in the first three months of the year compared to the same period last year,” said Redfin chief economist Nela Richardson. “Would-be sellers are likely waiting for prices to peak; they’re trying to time the market to fetch the largest possible gain. Whether the confidence of the current cohort of sellers translates into more new listings in the coming months is the number one question that determines whether 2017 will be a good year or a great year.”

Other findings that reveal a high level of confidence among sellers this spring include:

1. 21.1 percent of sellers said they would price high since negotiations are inevitable, up from 15.4 percent in January. Still, most sellers reported that they would price in the mid-range according to comparable homes.

2. When asked about the balance of power in their market, 20 percent said sellers have all the power, up from 13.1 percent in January.

To read the full report, complete with charts and insights from Redfin real estate agents, visit:
www.redfin.com.

About the Survey

Redfin’s survey was conducted between Apr. 12 and Apr. 17, and includes responses from 896 homeowners in 38 states and Washington, D.C. Of this group of respondents, 179 either said their home was currently listed for sale or expressed plans to sell within the next year, and are therefore considered “home sellers” for the purpose of this report.

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.

Contact Redfin

Redfin Journalist Services:
Jeffery Marino, 206-588-6863
press@redfin.com

Inaugural Redfin Migration Report: Movement out of Expensive California Housing Markets Dominated U.S. Migration Patterns in Early 2017

One in five Redfin users searched for homes outside their metro; Boston, Chicago and Seattle had the most loyal residents

Seattle, WA – April 24th, 2017 (BUSINESS WIRE) One in five prospective homebuyers searched mostly for homes outside their current metro area in the first quarter of 2017, according to a report from Redfin (www.redfin.com), the next-generation real estate brokerage. The inaugural Redfin Migration Report, which will be released on a quarterly basis, analyzed a sample of nearly one million Redfin.com users searching for homes across 75 metro areas in the first three months of 2017.

Redfin

The Redfin Migration Report uses proprietary Redfin data to provide a snapshot of where its users searched for homes in the most recent quarter in order to reveal emerging trends in relocation. The results correlated closely to actual purchases of Redfin home-buying customers made within and across metros. Moving forward, the report will be able to track these trends over time.

Three migratory trends emerged from the first quarter data:

1. Home seekers are leaving the most expensive metro areas, namely in California. Redfin found that some of the most expensive metros had the largest net outflow—the number of local users searching for a home in a different metro minus the number of users from another metro searching for a home in the subject metro. The San Francisco Bay Area topped the list of places with the largest net outflow, followed by New York and Los Angeles. At the state level, California had the largest net outflow.

“Fast-growing coastal cities may be generating the high-paying jobs, but they haven’t created enough budget-friendly housing to keep pace. The price of real estate and desire for homeownership is compelling many to uproot and seek housing in more affordable communities,” said Nela Richardson, Redfin chief economist. “Even a Bay Area family with two solid incomes can struggle to afford a modest home. For many, the only path to homeownership is to pack up and move out.”

Chart

2. The South and the Sun Belt are popular destinations for home seekers. Sacramento had the highest net inflow of users from other metro areas. Phoenix, Las Vegas, Dallas and Atlanta were also popular search locations, pulling homebuyers from coastal cities, including many from California.

Among states, Florida and Texas were the most popular destinations for those people looking to migrate away from their home metro last quarter. These states have an attractive combination of warm climates, relative affordability, especially when compared with the most common user origins, and strong local economies and jobs markets.

Chart
3. Chicago has the most loyal residents. Chicago topped the list of places where people are looking to buy a new home close to their current location, with 92.5 percent of local users searching only in the Chicago area. Likewise, more than nine out of 10 homebuyers in Boston, Seattle and Nashville searched for properties close to home.

To read the full report, complete with an interactive data map of metro-to-metro migration trends, 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
Alina Ptaszynski
(206) 588-6863
alina.ptaszynski@redfin.com

Redfin Housing Demand Index Drops Amid Lower-Than-Expected Buyer Activity in March; Remains Above Three-Year Average

Compared to February, the numbers of buyers going on tours and writing offers both declined on a seasonally adjusted basis

Seattle, WA – April 25, 2017 (BUSINESS WIRE) The Redfin Housing Demand Index decreased 13.9 percent from February, to a seasonally adjusted level of 108 in March, according to Redfin (www.redfin.com), the next-generation real estate brokerage.

Redfin Demand Index Logo

While homebuyer demand has cooled from its record high of 132 in January, this was still the strongest March since 2013, when the Demand Index registered just one point higher at 109. 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.

Compared to February, the seasonally adjusted number of buyers requesting tours was down 5.5 percent in March, and the seasonally adjusted number of buyers writing offers was down 22.8 percent.

The story in March was once again a limited selection of homes for sale, constraining the options for interested buyers. Across the 15 metros covered by Demand Index, there were 12.5 percent fewer homes for sale than the previous March, marking the twenty-second consecutive month of year-over-year inventory declines.

“The market is missing its moment because of too-low inventory,” said Redfin chief economist Nela Richardson. “Mortgage rates are the lowest they’ve been this year. Meanwhile low unemployment rates and high consumer confidence should create continued momentum in homebuyer demand. But, instead, we’re seeing demand cooling when it should be peaking. For this reason, we think the 2017 market will be a late bloomer, with new listings coming on later in the year and sales peaking in the early fall, instead of summer.”

Oakland, California, Sees Buyer Exhaustion, as Prices Can Only Go So High

The Oakland-area Demand Index was at 62 in March, sharply down from a four-year peak of 175 last November. Homebuyers were writing a seasonally adjusted 28.4 percent fewer offers in March than in February.

“The Oakland market has seen huge price increases over the past few years, with a major additional spike in prices and competition in the first few months of 2017,” said Noah Manning, a Redfin real estate agent in Oakland. “This surge was brought on by a combination of factors: a shortage of homes for sale and increased buyer activity due to the Fed’s forecast of multiple rate raises this year, as well as Oakland being one of the last somewhat affordable cities within reasonable proximity to the tech epicenters of San Francisco and Silicon Valley.

“However, the intense competition and rapidly increasing prices cannot last forever. Oakland’s pullback in demand is likely a result of buyer exhaustion, coupled with a worsening drought of affordable housing options. This has caused some buyers to put a hold on their home search or shift their focus to other areas within the Bay Area, like the nearby towns of San Leandro and Hayward, or the neighboring cities of El Cerrito and Richmond, all of which still offer relative affordability,” said Manning.

For additional national and local data and analysis, including metro-level charts and insights 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.

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

Redfin Names the Best College Towns to Buy an Investment Property

Redfin Compiled Median List Prices, U.S. News and World Report Ranking, Tuition Cost and Fees and Walk Score® Data to Find the Top College Towns to Buy an Investment Property

Seattle, WA – April 14, 2017 (BUSINESS WIRE) Investing in a home near a college has some undeniable perks–rent prices are typically stable and there’s always a new pool of tenants looking for rentals. Redfin (www.redfin.com), the next-generation real estate brokerage, narrowed down the most affordable college towns near schools that offer low tuition, a high-quality education and walkability. Redfin’s methodology includes median list price for homes near the school, tuition cost and fees, the most recent U.S. News and World Report ranking and data from Walk Score®, a Redfin company.

Redfin Logo

“It’s always great to invest in a location where there is a large pool of tenants, which is exactly what you get when you invest in a property near a school like Georgia Institute of Technology,” said Redfin real estate agent Rory Haigler. “The pool of potential tenants is also stable with new students coming in every year, so a property owner really doesn’t have to worry about where they will find the next tenant. I’ve had a lot of clients looking to invest in property near Georgia Tech, but the problem is that because it’s such a hot market, homes aren’t listed often.”

Here are the 20 best college towns to buy an investment property:

1. Atlanta, Georgia

2. Chapel Hill, North Carolina

3. Baltimore, Maryland

4. St. Louis, Missouri

5. Columbus, Ohio

6. Houston, Texas

7. Philadelphia, Pennsylvania

8. Rochester, New York

9. Pittsburgh, Pennsylvania

10. Cleveland, Ohio

11. Austin, Texas

12. Providence, Rhode Island

13. Madison, Wisconsin

14. Nashville, Tennessee

15. College Park, Maryland

16. Minneapolis, Minnesota

17. Provo, Utah

18. Winston-Salem, North Carolina

19. Ann Arbor, Michigan

20. Chicago, Illinois

To read the full report, complete with more information on each city, 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.

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:
Alanna Finn
(917) 822-5087
press@redfin.com