Redfin: Home Prices Surged 7.7 Percent in August as Inventory Fell 12.4 Percent

Hurricane Harvey sent Houston home sales down 29 percent while new listings tumbled 12 percent

Seattle, WA – September 14, 2017 (BUSINESS WIRE) (NASDAQ: RDFN) — Home prices in August surged 7.7 percent, the largest year-over-year price gain since May 2015, according to Redfin (www.redfin.com), the next-generation real estate brokerage. The national median sale price was $293,000, flat from July. None of the metro areas Redfin tracks saw prices decline in August. The median value of off-market homes in August was $251,000, as measured by the Redfin Estimate, up 0.7 percent from July.

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Sales in August fell 5.5 percent compared to last year, the largest decline posted since July 2016. This follows the 5 percent decline posted in July by the Redfin Housing Demand Index.

The number of homes for sale plunged 12.4 percent, the largest year-over-year decline in a 23-month streak of declining inventory. The number of new listings in August was down 1 percent from a year ago, leaving just 2.8 months of supply. Less than six months of supply signals the market is tilted in favor of sellers.

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Nearly a quarter (24.9%) of homes sold above their list price. The average sale-to-list ratio was 98.5 percent. The typical home that sold in August went under contract in 39 days, two days longer than July’s record-setting pace, typical of a seasonal slowdown.

“The real estate market still favors sellers, with strong demand and rising prices, but perhaps less so now than earlier in the year,” said Redfin CEO Glenn Kelman. “Newly listed homes are selling faster in 2017 than in 2016, but whereas in April the market was nine days faster than the 2016 market, in August it was five; the gap between 2016 and 2017 is narrowing slightly. Normally such differences wouldn’t be worth mentioning, but Redfin managers of coastal markets where demand has been strongest are now reporting that some buyers are stepping back from higher prices.”

Hurricane Harvey’s Impact on the Houston Real Estate Market

Hurricane Harvey sent Houston sales falling 29 percent year over year, as buyers backed out of purchasing flooded homes and home settlements were delayed awaiting required reinspections. Flood damage is limiting the number of homes being listed for sale. New listings declined 12.2 percent compared to last August. Despite the decline in new listings, inventory was still up 5.7 percent compared to last year.

While most real estate activity halted for a few days immediately following the storm, Redfin agents reported rebounding buyer interest, tours and offers in the final days of the month.

Other August Data

Competition

  • Seattle, WA was the fastest market, with nearly half of all homes pending sale in just 8 days, down from 10 days from a year earlier. Portland, OR and Denver, CO were the next fastest markets with 11 and 12 median days on market, followed by Boston, MA (13) and Tacoma, WA (13).
  • The most competitive market in August was San Jose, CA where 73.8% of homes sold above list price, followed by 72.3% in San Francisco, CA, 67.3% in Oakland, CA, 51.3% in Seattle, WA, and 48.1% in Tacoma, WA.

Prices

  • Seattle, WA had the nation’s highest price growth, rising 16% since last year to $522,000. Fort Lauderdale, FL had the second highest growth at 15.6% year-over-year price growth, followed by Cincinnati, OH (14.5%), Las Vegas, NV (14%), and San Jose, CA (13.4%).
  • No metros saw a price decline in August.
  • Detroit, MI had the highest month-over-month increase in the value of off-market homes up 3%, as measured by the Redfin Estimate; this mirrored price growth for on-market homes, up 5.3% year over year.

Sales

  • Columbia, SC saw the largest decline in sales since last year, falling 93.2%. Home sales in Newark, NJ and Houston, TX declined by 75.3% and 29.1%, respectively.
  • 4 out of 75 metros saw sales surge by double digits from last year. Camden, NJ led the nation in year-over-year sales growth, up 22%, followed by Baton Rouge, LA, up 21%. Baltimore, MD rounded out the top three with sales up 19% from a year ago.

Inventory

  • San Jose, CA had the largest decrease in overall inventory, falling 49.9% since last August. Oakland, CA (-31.8%), San Francisco, CA (-30.9%), and Tampa, FL (-26.8%) also saw far fewer homes available on the market than a year ago.
  • Austin, TX had the highest increase in the number of homes for sale, up 13.9% year over year, followed by New Orleans, LA (8.3%) and Houston, TX (5.7%).

Redfin Estimate

  • The median list price-to-Redfin Estimate ratio was 94.1% in San Francisco, the lowest of any market. This indicates the typical home for sale in August was listed at a price 5.9% below its estimated value. Only 8.9% of homes in San Francisco were listed for more than their Redfin Estimate.
  • Conversely, the median list price-to-Redfin Estimate ratio was 103% in Miami, FL and 102.6% in West Palm Beach, which means sellers are listing their homes for more than the estimated value in those metro areas. In Miami, 64.6% of homes were listed above their Redfin Estimate.

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 $50 billion in home sales.

Contacts

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

Redfin Housing Demand Index Dipped from June to July as Inventory Shortage Deepened

The number of Redfin customers requesting home tours and writing offers fell in July, but is still up by double digits year over year

Seattle, WA – September 1, 2017 (redfin.com) (NASDAQ: RDFN) The Redfin Housing Demand Index fell 5.0 percent from its all-time high of 130 in June to 124 in July, according to Redfin (www.redfin.com), the next-generation real estate brokerage. Still, the Demand Index was up 29.7 percent year over year. The Demand Index is adjusted for Redfin’s market share growth.

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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. The underlying methodology to the Redfin Housing Demand Index was revised in August 2017 to improve the way it accounts for the company’s market share.

Across the 15 metros covered by the Demand Index, there were 13.9 percent fewer homes for sale in July than there were a year prior, and there was a 5.9 percent decline in new listings. July marked the 26th consecutive month of year-over-year inventory declines.

“Buyer demand has been stronger so far in 2017 than last year, but the combination of low inventory and rising home prices is taking its toll heading into the fall,” said Redfin chief economist Nela Richardson. “Sellers are still in control of the market, but their advantage is narrowing as buyers are becoming less willing or able to chase escalating prices.”

The seasonally adjusted number of buyers requesting home tours fell 3.3 percent from June to July, while the number of those who wrote offers dropped 11.0 percent. Compared to last year, 35.3 percent more buyers requested tours in July and 21.0 percent more wrote offers.

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.

Contact Redfin

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

Redfin Migration Report: Home Affordability Continued to Shape Migration Currents as Homebuyers Looked to Leave Expensive Coastal Cities in the Second Quarter

The Bay Area, New York and Los Angeles ranked highest for net outflow of home searchers

Seattle, WA – August 10th, 2017 (BUSINESS WIRE) (NASDAQ: RDFN) — Twenty-one percent of Redfin.com users in the second quarter of 2017 searched mostly for homes outside the metro where they reside, slightly up from 20 percent in the first quarter, according to the latest migration report from Redfin (www.redfin.com), the next-generation real estate brokerage.

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The Redfin Migration Report analyzed a sample of more than one million Redfin.com users searching for homes across 75 metro areas during the peak of the homebuying season from April through June. Redfin used IP addresses to identify the metros where home searchers likely reside and compared that to where users were searching for homes.

While 79 percent of Redfin.com home searchers looked to stay in their current metro, several key trends emerged among those looking to move to another metro:

1. There continued to be significant migration within the state of California, with the most common search patterns being buyers looked to leave the Bay Area and Los Angeles, heading to Sacramento and San Diego.

2. Several Rust Belt metros saw more than a quarter of local homebuyers looking at homes outside their metro with Chicago being the top destination.

3. Metros in the South and the Sunbelt remained popular destinations for migrants from expensive coastal cities.

4. Chicago, Boston and Seattle again had the highest share of residents looking to stay in their current metros.

“Home searches are early indicators of home sales. The migration patterns in our report closely correlate to actual purchases made by Redfin home-buying customers within and across metros,” said Taylor Marr, a Redfin data scientist who conducted the underlying research.

“Buyers who can’t afford a home in their current city are exploring what is available elsewhere,” said Marr. “We are already seeing strong buyer demand and competition in mid-tier cities like Sacramento, Phoenix and Atlanta. As home searches evolve into purchase offers and home sales, we anticipate prices and competition will continue to grow in those markets.”

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To read the full report, complete with an interactive data map of metro-to-metro migration trends and full 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 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

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.

Redfin

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