Redfin: Home Sales Fell 8.1 Percent in September, Third Month in a Row of Declining Sales
October 19 2017 - 8:00AM
Business Wire
Lack of Inventory Stifling the Market
Despite Still-Strong Demand
(NASDAQ: RDFN) — Home sales fell 8.1 percent compared to last
year, the largest decline posted since July 2016, according to
Redfin (www.redfin.com), the next-generation real estate brokerage.
Meanwhile price-growth is strong, up 7.6 percent in September to a
national median sale price of $288,000 across all markets Redfin
serves.
Nationally, the number of homes for sale plunged 10.9 percent,
continuing the 24-month streak of declining inventory. The number
of new listings in September fell 7.7 percent from a year ago,
leaving 3.3 months of supply. Less than six months of supply
signals the market is tilted in favor of sellers.
The median days on market ticked up to 42 in September from 39
in August. The market was still five days faster than last
September. The average sale-to-list price ratio was 98.4 percent
and 23.6 percent of homes sold above their list price in
September.
Weather took its toll in several markets, with Hurricane Irma in
Florida and Harvey in Houston. Real estate activity was put on hold
as communities dealt with the storm and its aftermath. As a result
of hurricane-related disruptions, Redfin expects real estate
activity to be more volatile than normal in these markets.
Home sales in Miami, Fort Lauderdale, West Palm Beach,
Jacksonville, Orlando and Tampa all declined by more than 15
percent compared to last September. Miami sales took the biggest
hit with a year-over-year decline of 38.4 percent. In Houston, home
sales tumbled more than 25 percent in August, but recovered in
September, and were essentially flat (0.2%) compared to a year
ago.
“The housing market is running on fumes due to low inventory,”
said Redfin chief economist Nela Richardson. “September marks the
first time since 2014 that we’ve seen three consecutive months of
year-over-year sales declines. The inventory shortage is most
severe for affordable homes. There has not been an increase in
homes priced under $260,000 in two years.”
In September, new listings from homes priced in the lowest
tercile of the market (under $260,000) were down 14.9 percent year
over year. Inventory for the middle tercile of new listings, priced
between $260,000 and $470,000, was down 4.7 percent year over year.
The only inventory increase was for listings above $470,000, up 2.3
percent from a year ago.
“The good news is that so far markets affected by Hurricane
Harvey, like Houston, are rebounding in terms of sales quickly,”
said Richardson. “That bodes well for Floridian markets.”
Market Summary September 2017
Month-Over-Month Year-Over-Year Median
sale price $288,200 -1.0% 7.6%
Homes sold 231,400 -17.1% -8.1%
New listings 262,200 -14.0%
-7.7% All Homes for sale 754,800 -2.1%
-10.9% Median days on market 42 3
-5 Months of supply 3.3 0.5
-0.1 Sold above list 23.6% -1.4%
1.2% Median Off-Market Redfin Estimate
$250,600 0.7% N/A Average Sale-to-list
98.4% -0.1% 0.3%
Other September Highlights
Competition
- Seattle, WA was the fastest market,
with nearly half of all homes pending sale in just 10 days, down
from 12 days from a year earlier. San Jose, CA, Boston, MA, and
Portland, OR were the next fastest markets at 14 median days on
market, followed by Oakland, CA (15).
- The most competitive market in
September was San Francisco, CA where 71.7% of homes sold above
list price, followed by 71.6% in San Jose, CA, 64.6% in Oakland,
CA, 47.7% in Seattle, WA and 42.7% in Tacoma, WA.
Prices
- San Jose, CA had the nation’s highest
price growth, rising 16.3% since last year to a median of $1
million. Tucson, AZ had the second highest growth at 15.8%
year-over-year price growth, followed by Tacoma, WA (14.5%), Las
Vegas, NV (14%) and Seattle, WA (13.3%).
- Just 3 metros saw price declines in
September: Camden, NJ (-6.4%), Baltimore, MD (-3.1%) and Newark, NJ
(-2.7%).
Sales
- Home sales in Miami, FL and Fort
Lauderdale, FL declined by 38.4% and 32.4%, respectively, as
Hurricane Irma ground the market to a halt.
- 12 of 74 metros saw sales increase from
last year. Camden, NJ led the nation in year-over-year sales
growth, up 8.8%, followed by Honolulu, HI, up 7.8%. Detroit, MI
rounded out the top three with sales up 4.8% from a year ago.
Inventory
- San Jose, CA had the largest decrease
in overall inventory, falling 51.7% since last September.
Rochester, NY (-27.3%), Buffalo, NY (-26.9%) and Oakland, CA
(-26.5%) 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 39.6% year over year,
followed by Baton Rouge, LA (34.0%) and Tulsa, OK (13.8%).
To read the full report, complete with data and charts, please
visit the following
link:https://www.redfin.com/blog/2017/10/market-tracker-september-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/20171019005336/en/
Redfin Journalist Services:Alina Ptaszynski,
206-588-6863press@redfin.com
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