Redfin: Home Sales Fell 3.5 Percent in July, the 22nd Consecutive Month to Post an Inventory Decline
August 17 2017 - 10:05AM
Business Wire
Home prices increased 6.8 percent from last
year
(NASDAQ: RDFN) — Home prices increased 6.8 percent from a year
ago to a national median sale price of $293,000 in July, according
to Redfin (www.redfin.com), the next-generation real estate
brokerage. This represented a slight decline of 0.3 percent from
June. The median value of off-market homes in July was $249,000, as
measured by the Redfin Estimate, up 0.7 percent from June.
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A home for sale in Baltimore. (Photo:
Business Wire)
Sales in July declined 3.5 percent compared to last year,
constrained by a low supply of homes on the market. The number of
homes for sale fell 11 percent, marking 22 consecutive months of
year-over-year declines in inventory. July had a three-month supply
of homes—higher than June’s record-low 2.5 months—but still well
below the six months that represent a market balanced between
buyers and sellers.
The inventory shortage is being felt nationwide. With the
exception of Newark, N.J., and Miami, Fla., every metro Redfin
tracks had less than six months of supply.
“In the first half of the year, the housing market was able to
keep its head above water, despite high prices and low inventory,
because buyer demand was so strong,” said Redfin chief economist
Nela Richardson. “Multiple months of inventory declines took a toll
on sales as buyers took a breather in July to wait for more
listings. Despite last month’s sluggishness, the number of homes
sold in the first seven months of the year was up 4 percent
compared with the same period last year.”
The typical home that sold in July went under contract in 37
days, tying June’s record-setting pace. In three of the four most
recent years, July and June have had the same number of median days
on market. Portland and Seattle were the fastest-moving markets,
with the typical home in each market finding a buyer in just eight
days. More than a quarter (25.7%) of homes sold above their list
price.
Market Summary July 2017 Month-Over-Month
Year-Over-Year Median sale price $293,400
-0.3% 6.8% Homes sold 256,300 -19.6%
-3.5% New listings 307,900 -12.1% -2.0% All
Homes for sale 778,500 -0.9% -11.0% Median
days on market 37 0 -5 Months of supply
3 0.5 -0.3 Sold above list 25.7% -1.2%
1.6% Median Off-Market Redfin Estimate $249,000
0.7%
Other July Highlights
Competition
- Portland, OR and Seattle, WA were the
fastest markets, with half of all homes pending sale in just 8
days. Denver, CO and Boston, MA were the next fastest markets with
9 median days on market, followed by Tacoma, WA (10).
- The most competitive market in July was
San Jose, CA where 74.4% of homes sold above list price, followed
by 71.9% in San Francisco, CA, 67.7% in Oakland, CA, 58.0% in
Seattle, WA, and 51.8% in Tacoma, WA.
Prices
- Seattle, WA had the nation’s highest
price growth, rising 17.8% since last year to $530,000. Las Vegas,
NV and Jacksonville, FL had the second highest growth at 13%
year-over-year price growth, followed by Milwaukee, WI (12.6%) and
Fort Worth, TX (12.5%).
- 4 metros saw price declines in July
including Camden, NJ (-7.7%), Newark, NJ (-5.6%), Baltimore, MD
(-1.2%), and Hampton Roads, VA (-0.2%).
- Jacksonville, FL had the highest
month-over-month increase in the value of off-market homes up 4.5%,
as measured by the Redfin Estimate, this mirrored strong price
growth for on-market homes, up 13% year over year.
Sales
- Only two out of 74 metros saw sales
surge by double digits from last year: Baltimore, MD sales
increased 30%, followed by Camden, NJ, up 20%.
- Newark, NJ saw the largest decline in
sales since last year, falling 73.4%. Home sales in Buffalo, NY and
Tulsa, OK declined by 22.6% and 20.8%, respectively.
Inventory
- San Jose, CA had the largest decrease
in overall inventory, falling 43.7% since last July. Rochester, NY
(-38.0%), Buffalo, NY (-37.8%), and San Francisco, CA (-29.3%) also
saw far fewer homes available on the market than a year ago.
- Salt Lake City, UT had the highest
increase in the number of homes for sale, up 27.9% year over year,
followed by Tulsa, OK (23.3%) and Baton Rouge, LA (18.0%).
Redfin Estimate
- The median list price-to-Redfin
Estimate ratio was 94.9% in San Francisco, the lowest of any
market. This indicates the typical home for sale in July was listed
at a price 5.1% below its estimated value. Only 10.7% 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 102.8% in
Atlanta, which means sellers are listing their homes for more than
the estimated value in those metro areas. In Atlanta, 74.5% of
homes were listed above their Redfin Estimate, the highest
percentage of any metro.
To read the full report, complete with data and charts, please
visit the following
link:https://www.redfin.com/blog/2017/08/market-tracker-july-2017.html
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.
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 be added to
Redfin's press release distribution list, subscribe here. To view
Redfin's press center, click here.
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version on businesswire.com: http://www.businesswire.com/news/home/20170817005647/en/
Redfin Journalist Services:Alina Ptaszynski,
206-588-6863press@redfin.com
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