Redfin: Home Prices and Buyer Competition Hit New Highs in June as Inventory Drought Dragged into 21st Consecutive Month

New records set: 26.6 percent of homes sold in June went for more than their asking price and the typical home found a buyer in 36 days

In Denver, Seattle and Portland, the typical home sold in June was off the market in a week

Seattle, WA – July 13, 2017 (BUSINESS WIRE) U.S. home prices rose 7.3 percent to a median sale price of $298,000 in June, according to Redfin (www.redfin.com), the next-generation real estate brokerage. This is the highest national median sale price Redfin has recorded since the company began keeping track in 2010.

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Home sales increased 1.9 percent compared to last year, constrained by a long-standing inventory shortage. The number of homes for sale fell 10.7 percent, leaving just 2.5 months of supply—the lowest supply on record since 2010—and well below the six months that represents a market balanced between buyers and sellers.

Every record in market speed and competition that was set in May was broken again in June. The typical home that sold in June went under contract in 36 days, one day faster than in May, setting a new record-fast pace for home sales. Denver, Portland and Seattle were the fastest-moving markets, with the typical home in each market finding a buyer in just seven days. More than a quarter (26.6%) of homes sold above their list price, the highest percentage Redfin has recorded. The average sale-to-list price ratio hit a record high of 95.5 percent in June.

“This market is unlike any we’ve ever seen before,” said Redfin chief economist Nela Richardson. “Month after month, new records are set for the pace at which homes are going under contract. Demand continues to swell while supply troughs. For buyers competing in this market, it’s survival of the fittest. The strongest offers that are most likely to close quickly and smoothly rise to the top of the pile.”

Regional June Highlights

Competition

  • Denver, CO, Portland, OR and Seattle, WA tied for fastest market at 7 median days on market, followed by Grand Rapids, MI (8) and Boston, MA (9).
  • The most competitive market in June was San Jose, CA where 73.7% of homes sold above list price, followed by 70.6% in San Francisco, CA, 69.8% in Oakland, CA, 62.3% in Seattle, WA, and 52.6% in Tacoma, WA.

Prices

  • Fort Lauderdale, FL had the nation’s highest price growth, rising 15.6% since last year to $260,000, followed by Nashville, TN (14%), Seattle, WA (13.5%), Tacoma, WA (12.2%), and Deltona, FL (12.1%).
  • Two metros saw price declines in June: Greensboro, NC (-1.2%), and Tulsa, OK (-0.3%).

Sales

  • Ten out of 89 metros saw sales surge by double digits from last year. Poughkeepsie, NY led the nation in year-over-year sales growth, up 42.6%, followed by Camden, NJ, up 23.1%. Lakeland, FL rounded out the top three with sales up 16.3% from a year ago.
  • Buffalo, NY saw the largest decline in sales since last year, falling 26.9%. Home sales in Rochester, NY and Fort Lauderdale, FL declined by 21.2% and 15.5%, respectively.

Inventory

  • San Jose, CA had the largest decrease in overall inventory, falling 42.2% since last June. Rochester, NY (-29.7%), San Francisco, CA (-26.6%), and Tampa, FL (-26.5%) also saw far fewer homes available on the market than a year ago.
  • Three metros in Utah saw the highest increases in the number of homes for sale. Ogden, UT had the highest increase in inventory, up 40.5% year over year, followed by Provo, UT (36.7%) and Salt Lake City, UT (30.1%).

To read the full report, complete with 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 $40 billion in home sales.

Contacts

Redfin Journalist Services:
Alina Ptaszynski, 206-588-6863
press@redfin.com

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: May Housing Market Sets Records for Speed and Competition

The typical home sold in May found a buyer in 37 days

More than a quarter of homes sold for more than their asking price

Seattle, WA – June 15, 2017 (BUSINESS WIRE) U.S. home prices rose 6.8 percent to a median sale price of $288,000 in May, according to Redfin (www.redfin.com), the next-generation real estate brokerage. Home sales increased 7.5 percent over last year, despite a long-standing shortage in the supply of homes. The number of homes for sale fell 10.9 percent, leaving just 2.7 months of supply, the lowest supply Redfin has recorded since we began tracking the market in 2010. Six months is generally considered a market balanced between buyers and sellers.

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The typical home that sold in May went under contract in 37 days, breaking the previous record of 40 days set in April. More than a quarter of homes sold above their list price, the highest percentage Redfin has recorded. The median sale-to-list price ratio set another record, hitting 95.4 percent in May.

“There is still a lot of momentum in home prices in many metros, not only on the coasts but also in places like Buffalo, Grand Rapids and Omaha,” said Redfin chief economist Nela Richardson. “Strong local economic growth and burgeoning demand from older millennials are accelerating home-price growth in this very competitive, low-inventory pre-summer market. The Federal Reserve’s latest announcement to raise short-term rates will have very little effect on buyer demand or on the overall housing market. If anything, it may motivate buyers to make their purchases sooner rather than later.”

In a Redfin-commissioned survey conducted last month, more than 1,000 homebuyers responded to a question about the effect a hypothetical rate hike above 5 percent would have on their home-buying plans. A quarter said it would have no impact, while nearly as many (23%) said they would increase their urgency to buy before rates went up further. Twenty-nine percent said they would slow down their search and see if rates came back down, 18 percent said their urgency wouldn’t change, but they would look in other areas or buy a smaller home. Just 5 percent said they would cancel their home-buying plans altogether.

Regional May Highlights

Competition

  • Denver, CO, was the fastest market for the third month in a row, with nearly half of all homes pending sale in just 6 days. Seattle, WA, was the next fastest markets with 7 median days on market, followed by Grand Rapids, MI (8), Portland, OR (8), and Omaha, NE (9).
  • The most competitive market in May was San Jose, CA, where 74.1% of homes sold above list price, followed by 70.9% in Oakland, CA, 70.1% in San Francisco, CA, 64.1% in Seattle, WA, and 51.8% in Tacoma, WA.

Prices

  • Seattle, WA, had the nation’s highest price growth, rising 15.9% since last year to $510,000. Lakeland, FL, had the second-highest growth at 15.1% year-over-year price growth, followed by Tampa, FL (13.2%), Memphis, TN (13%), and Manchester, NH (12.2%).
  • Two metros saw slight price declines in May including Albany, NY (-0.9%), and Baton Rouge, LA (-0.6%).

Sales

  • In 29 out of 89 metros, sales surged by double digits from last year. Poughkeepsie, NY, led the nation in year-over-year sales growth, up 44.4%, followed by Memphis, TN, up 40.2%. Philadelphia, PA, rounded out the top three with sales up 28.3% from a year ago.
  • Rochester, NY, had the largest decline in sales since last year, falling 14.3%. Home sales in Santa Rosa, CA, and Buffalo, NY, declined by 11.2% and 10.3%, respectively.

Inventory

  • Rochester, NY, had the largest decrease in overall inventory, falling 35.7% since last May. Buffalo, NY (-31.9%), San Jose, CA (-31.0%), and Seattle, WA (-27.1%), also had far fewer homes available on the market than a year ago.
  • Ogden, UT, had the highest increase in the number of homes for sale, up 41.4% year over year, followed by Provo, UT (34.9%), and Fort Myers, FL (27.3%).

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.

Contacts

Redfin Journalist Services
Alina Ptaszynski
(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