Redfin Housing Demand Index Dips from January’s Record High

Limited supply is a key factor holding back sales this spring amid overall strong buyer interest

Seattle, WA – March 28, 2017 (BUSINESS WIRE) The Redfin Housing Demand Index decreased 8.5 percent from January’s record high, to a seasonally adjusted level of 118 in February, according to Redfin (www.redfin.com), the next-generation real estate brokerage.

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Despite the dip from the previous month, this was the strongest February for homebuyer demand since at least 2013, the first year measured by the index. 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 January, the seasonally adjusted number of buyers requesting tours was down 8.2 percent in February, while the seasonally adjusted number of buyers writing offers was down 7.7 percent.

“The only factor holding back sales this spring is supply,” said Redfin chief economist Nela Richardson. “Limited inventory, particularly for starter homes, has put a crimp in the 2017 market. We expect to see more listings hit the market this spring, but there will still not be enough inventory to match homebuyer demand.”

While lower than January’s all-time high, homebuyer demand in February remained well above levels seen around this time last year. Demand was up 20.0 percent compared to the previous February, led by a 25.7 percent year-over-year increase in homebuyers requesting tours and an 11.9 percent increase in buyers making offers.

February continued a trend of limited selection for homebuyers, who saw 7.2 percent fewer new listings hit the market, and 13.9 percent fewer homes on the market overall than the previous February.

Denver Buyers Out in Full Force Despite Historically Limited Selection

The Denver-area Demand Index was at 166 in February, up 100.4 percent compared to the same time last year. Demand was strong despite inventory 30.7 percent lower than this time last year.

“The Denver metro is seeing incredibly limited selection, with the number of homes for sale down to its lowest level in over 30 years,” said Redfin real estate agent Corey Keach. “But that hasn’t stopped buyers, from whom there is as much, if not more, interest than last year. Add that up, and you have a lot of pressure on the market, with multiple offers basically an expectation, particularly for those single-family homes in price ranges below $500,000. And it’s rare for a non-cash buyer to win any home under $300,000.”

“Homes in higher price points are also seeing strong competition, and even some $1 million and $2 million dollar homes in Boulder are seeing multiple offers. Competition at that price point used to be rare here, which shows just how hot the market is.”

Redfin real estate agents also noted that the problem of limited choice of homes has been worsened by the influx of residents to the Denver area, which is experiencing strong economic growth. With very few residents leaving, the metro’s population is outpacing its housing supply.

For additional national and local data and analysis, including metro-level charts and insights from real estate agents, 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
Alex Starace
(206) 588-6863
press@redfin.com

Survey: Most Home Sellers Tried to Negotiate Real Estate Agent Commissions Last Year

Millennial Home Sellers Most Likely to Negotiate for Lower Commissions; Reluctant to Move to Areas Where Most People Have Differing Political Views

Seattle, WA – March 15, 2017 (BUSINESS WIRE) A majority of sellers last year tried to negotiate their listing agent’s commission to a lower price, according to a survey of 3,352 homebuyers and sellers across 11 major metropolitan markets conducted in December 2016 by SurveyGizmo and commissioned by Redfin (www.redfin.com), the next-generation real estate brokerage.

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Fifty-seven percent of sellers last year attempted to negotiate their agent’s commission, up from 52 percent in June 2016. The trend was partly driven by Millennial sellers, 66 percent of whom said in December they had attempted to negotiate with their agent.

Savings were prevalent among homebuyers, too. Nearly half (49 percent) said they got a refund, closing-cost contribution or other consideration from their agent worth $100 or more, up from 46 percent who said the same in June.

Following are six major findings:

1. Most sellers are negotiating for lower commissions.
2. Nearly three out of four sellers checked their online home-value estimates at least weekly before deciding to list their home for sale. One in five checked daily or near daily.
3. Rising mortgage interest rates haven’t deterred most homebuyers.
4. The top economic concerns are income inequality and affordable housing.
5. Many homebuyers, especially Millennials, are hesitant to move to an area where people tend to have different political views from their own.
6. Nearly half of minority homebuyers felt potential discrimination because of their race.

“Millennials are more data savvy than previous generations and naturally comfortable taking advantage of the relatively recent data transparency and technological innovations in the industry,” said Nela Richardson, Redfin chief economist. “This makes them more informed than any cohort the housing market has ever seen, and partly because of that, more willing to negotiate fees. Millennials’ hesitance to move to places where people have different political views suggests that our already deeply divided nation could become even more geographically segregated by ideology. As Millennials age into peak home-buying years, we will continue to see their preferences reflected not only in how homes are bought and sold, but also the makeup of cities and neighborhoods across the country. This carries big implications for the future of our political parties and electoral outcomes.”

For the full report including more findings, charts and a detailed methodology, 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:
Keena Bean
(917) 822-5087
press@redfin.com

Redfin Quantifies the Effect of Public Transportation Access on Home Prices

One Transit Score Point is Worth an Average of $2,040, or 0.6 Percent of a Home’s Value

One Transit Score Point is Most Valuable in Atlanta, Boston and Washington, D.C.

Seattle, WA – March 20th, 2017 (BUSINESS WIRE) One Transit ScoreⓇ point can increase the price of a home by an average of $2,040 or 0.6 percent, according to the latest analysis by Redfin (www.redfin.com), the next-generation real estate brokerage. To estimate the value of public transportation access when buying or selling a home, Redfin looked at the sale prices and Transit Score ratings of more than one million homes sold between January 2014 and April 2016 across 14 major metro areas. Transit Score measures the usefulness and convenience of public transportation (bus, subway, light rail, ferry, etc.) routes near a given location.

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Of the 14 metro areas included in the analysis, one Transit Score point is worth the most, as a percentage of the median sale price, in Atlanta. There, one Transit Score point is worth $1,901, or 1.13 percent, on average. After Atlanta, a point of Transit Score carries the highest value in Boston (1.10%) and Washington, D.C. (0.96%).

“Transit is an important building block to economic mobility,” said Redfin chief economist Nela Richardson. “The more that cities invest in good transit, the bigger financial impact for homeowners and the better access families of all incomes have to jobs and public amenities. Transit is an economic win-win for communities.”

To read the full report, complete with data, charts and more insights, 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:
Alanna Finn
(917) 822-5087
press@redfin.com

Redfin: Home Prices Jumped in February as Sales Were Constrained by a Double-Digit Inventory Dip

Affordability Pressures Mount amid Rising Mortgage Rates

Seattle, WA – March 16th, 2017 (BUSINESS WIRE) U.S. home prices rose 7.2 percent in February, which marked 60 consecutive months of annual increases since home prices bottomed in early 2012, according to Redfin (www.redfin.com), the next-generation real estate brokerage.

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Home sales gained a modest 1.8 percent, constrained by a continuing inventory shortage. The number of homes for sale fell 12.9 percent year over year in February, the third month in a row that inventory declined by double digits. Housing affordability pressures are increasing, especially for first-time buyers, amidst continuously increasing prices and the Federal Reserve’s recent announcement of an interest rate hike. However, rising prices may lead more homeowners to list their homes this spring.

“The total level of home equity reached a new peak at the close of 2016, according to recent Fed data,” said Redfin chief economist Nela Richardson. “While great for homeowners, continuously strong price growth across the U.S. since 2012 has posed significant challenges for first-time buyers, especially given such low supply in affordable price-tiers. There is a silver lining on the horizon, however. Rising prices and increased equity may tip the scales for homeowners who have been delaying their decision to move up, which could add much-needed starter-home inventory to the market.”

Despite affordability concerns and low inventory, February still proved to be a strong month for buyer demand. Market speed increased again, making for the fastest February Redfin recorded since 2010. The typical home that sold last month went under contract in 60 days, eight days faster than one year prior. Nearly 15 percent of all homes listed for sale in February were off the market within two weeks, up from 11.7 percent last year.

Regional February Highlights

Competition

  • Seattle, WA was the fastest market, with nearly half of all homes pending sale in just 12 days, down from 13 days from a year earlier. Oakland, CA and Denver, CO were the next fastest markets with 15 and 18 median days on market, followed by San Jose, CA (21) and San Francisco, CA (28).
  • Competition was fierce in San Jose, CA where 63.1% of homes sold above list price, followed by 62.0% in San Francisco, CA, 59.1% in Oakland, CA, 49.3% in Seattle, WA, and 36.3% in Tacoma, WA.

Prices

  • Portsmouth, NH had the nation’s highest price growth, rising 21.4% since last year to $285,000. Deltona, FL had the second highest growth up 20.1%, followed by Tampa, FL (18.8%), Jacksonville, FL (18.7%), and Ogden, UT (17.2%).
  • Prices dropped in four metros, including Baton Rouge, LA (-4.2%), Wilmington, DE (-2.5%), Honolulu, HI (-1%), and Pittsburgh, PA (-0.8%).

Sales

  • 17 out of 90 metros saw sales surge by double digits from last year. Charleston, SC led the nation in year-over-year sales growth, up 39.2%, followed by St. Louis, MO, up 30%. Fort Myers, FL rounded out the top three with sales up 25.2% from a year ago.
  • Albany, NY saw the largest dip in sales since last year, falling 22.5%. Home sales in Portsmouth, NH declined by 22.4% as well.

Inventory

  • Rochester, NY had the largest decrease in overall inventory, falling 42.4% since last February. Buffalo, NY (-37.8%), Seattle, WA (-35.3%), and Omaha, NE (-34.7%) also saw far fewer homes available on the market than a year ago.
  • Provo, UT had the highest increase in the number of homes for sale, up 30.7% year over year, followed by Knoxville, TN (21.6%) and New Orleans, LA (16.1%).

To read the full report, complete with data and charts, please 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. To view Redfin’s press center, click here.

Contacts

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

Redfin Ranks the Best Places to Live If You Love March Madness

Philadelphia, Louisville and Los Angeles Lead the Field

Seattle, WA – March 13th, 2017 (BUSINESS WIRE) Philadelphia, Louisville and Los Angeles are the best U.S. cities to live in if you love March Madness, according to the latest report by Redfin (www.redfin.com), the next-generation real estate brokerage. Redfin looked at factors that would make cities more fun and livable for March Madness fanatics, including number of times the city hosted the NCAA tournament, NCAA tournament appearances and final four runs by nearby schools, bars in the area and average home prices.

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Cities with traditional powerhouses nearby, such as Philadelphia (Villanova Wildcats), Louisville (Louisville Cardinals), Lexington (Kentucky Wildcats) and Los Angeles (UCLA Bruins) all cracked the top 10. Affordable areas in the midwest with a lot of bars also did very well, with Milwaukee (Marquette Golden Eagles), Cincinnati (Cincinnati Bearcats), Indianapolis (Butler Bulldogs) and Dayton (Dayton Flyers) beating out the rest of the field. Syracuse (Syracuse Orange) and Arizona (Arizona Wildcats) rounded out the top 10 thanks to their rich basketball history and relative affordability compared to the rest of the tournament teams and cities.

The 10 best cities for March Madness fans are:

1. Philadelphia (Villanova Wildcats)
2. Louisville (Louisville Cardinals)
3. Los Angeles (UCLA Bruins)
4. Milwaukee (Marquette Golden Eagles)
5. Cincinnati (Cincinnati Bearcats)
6. Dayton (Dayton Flyers)
7. Syracuse (Syracuse Orange)
8. Lexington (Kentucky Wildcats)
9. Indianapolis (Butler Bulldogs)
10. Tucson (Arizona Wildcats)

The full report complete with data, images and a detailed methodology can be found here: 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 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.

Contacts:

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

Redfin: Home Prices and Sales Showed Steady Growth in January While Inventory Continued to Decline

Last Month was the Fastest January Housing Market on Record

Seattle, WA – February 16, 2017 (BUSINESS WIRE) U.S. home prices rose 7.0 percent in January and home sales gained 5.6 percent over last year, according to Redfin (www.redfin.com), the next-generation real estate brokerage.

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Inventory fell 12 percent compared to last year, the largest annual drop in the number of homes for sale since April 2013. The dearth of supply was due in part to a 5.1 percent annual decline in new listings. But last month was also the fastest January on record since Redfin began tracking this measure in 2010. The typical home sold in 59 days — seven days faster than last year and two weeks faster than January 2015.

“Buyers jumped through three hurdles last month: rising prices, low inventory and a fast market,” said Redfin Chief Economist Nela Richardson. “Sellers, however, are still warming the bench as the supply picture looks weaker than demand. This was the first January in three years in which new listings fell short of the previous year.”

The national trend of strong home sales and price growth in January was driven by the country’s more affordable markets. Double-digit sales and price growth primarily occurred in metro areas with a median sale price under $300,000, such as Lakeland, Florida, Poughkeepsie, New York, and Memphis, Tennessee. The highest competition continued to take place in the tech hubs of the West Coast.

Regional January Highlights

Competition

  • Denver, CO, was the fastest market, with half of all homes pending sale in just 23 days, down from 43 days a year earlier. Seattle, WA, and Oakland, CA, were the next fastest markets, with 26 and 27 median days on market, respectively, followed by Grand Rapids, MI (29), and Fresno, CA (32).
  • Prices were most likely to escalate in San Jose, CA, where 48.8% of homes sold above list price, followed by 48.5% in Oakland, CA, 47.7% in San Francisco, CA, 37.3% in Seattle, WA, and 34.4% in Tacoma, WA.

Prices

  • Dallas-Fort Worth, TX, had the nation’s highest price growth, rising 17% since last year to $233,995. Cleveland, OH, had the second-highest growth at 15.4% year-over-year price growth, followed by Cincinnati, OH (15%), Salt Lake City, UT (14.9%), and Ogden, UT (14.3%).
  • Two metros, Baton Rouge, LA (-6.4%), and Allentown, PA (-2.8%), saw year-over-year price declines in January.

Sales

  • Thirty-three out of 90 metros saw sales surge by double digits from last year. Lakeland, FL, led the nation in year-over-year sales growth, up 28.7%, followed by Poughkeepsie, NY, up 28.0%. Memphis, TN, rounded out the top three with sales up 26.1% from a year ago.
  • Columbia, SC, saw the largest decline in sales since last year, falling 65.0%. Home sales in Grand Rapids, MI, and Buffalo, NY, declined by 14.3% and 9.9%, respectively.

Inventory

  • Buffalo, NY, had the largest decrease in overall inventory, falling 39.8% since last January. Portsmouth, NH (-35.2%), Rochester, NH (-34.7%), and Omaha, NE (-34.6%), also saw far fewer homes available on the market than a year ago.
  • Provo, UT, had the highest increase in the number of homes for sale, up 33.7% year over year, followed by San Jose, CA (17.0%), and Raleigh, NC (16.7%).

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