SEATTLE, July 22, 2019 /PRNewswire/ -- (NASDAQ: RDFN)
— U.S. home-sale prices rose for the third consecutive month in
June, growing 3.4 percent year over year to a median of
$321,200, according to a new report
from Redfin (www.redfin.com), the technology-powered real estate
brokerage. June's price-growth rate was on par with the May rate
and was down from a 5.5 percent year-over-year gain in June 2018.
Only six of the 85 largest metro areas Redfin tracks saw a
year-over-year decline in their median sale price, the biggest of
which was once again in San Jose,
where home prices were down 4.9 percent from a year earlier.
Oxnard, CA (-4.8%), Oakland, CA (-2.0%), Seattle, WA (-0.5%), Lake County, IL (-0.1%) and Los Angeles, CA (-0.1%) rounded out the list
of metro areas with price drops.
"As national home price growth stabilizes, we're continuing to
see supply and demand dynamics play out differently in affordable
inland markets than in expensive coastal markets," said Redfin
chief economist Daryl Fairweather.
"In places like Philadelphia and
Cleveland, where home prices are
growing by double digits and buyers are rate- and price-sensitive,
falling mortgage interest rates make buying a home this summer
increasingly attractive. But without a commensurate increase in the
number of homes for sale, some of the most affordable markets are
driving nationwide home prices up. Meanwhile, expensive markets
like the Bay Area and Seattle are
still feeling a chill with falling prices and many more homes for
sale than there were a year ago. Unlike their inland counterparts,
buyers in these once-hot West Coast markets are less likely to feel
the urgency to buy while rates are low and before prices rise more.
As long as mortgage rates and inventory are low, we'll see more
buyers competing for homes and driving up prices in places where
they are still relatively affordable. And without more homes to
buy, particularly at affordable price points, sales will continue
to lag."
Market
Summary
|
June
2019
|
Month-Over-Month
|
Year-Over-Year
|
Median sale
price
|
$321,200
|
1.7%
|
3.4%
|
Homes sold
|
302,700
|
-5.4%
|
-8.0%
|
New
listings
|
370,100
|
-12.5%
|
-5.7%
|
All Homes for
sale
|
899,900
|
0.9%
|
0.5%
|
Median days on
market
|
35
|
-1
|
0
|
Months of
supply
|
3
|
0.2
|
0.3
|
Sold above
list
|
24.9%
|
0.5%
|
-3.5%
|
Median Off-Market
Redfin Estimate
|
$300,300
|
1.4%
|
6.1%
|
Average
Sale-to-list
|
98.8%
|
0.4%
|
0.1%
|
Home sales fell 8 percent in June compared to a year earlier.
This was a sharp reversal from May, when home sales increased 2.2
percent from a year before. The decline was broad, as 80 of the 85
metros tracked by Redfin saw year-over-year home sales fall in
June.
The 8 percent drop was the fourth largest sales decline in eight
years, but Redfin economists explain that it was largely due to the
fact that June 2018 had one more
weekday--a Friday, which tends to be the most common day for home
closings--than June 2019. When
adjusted for the number of weekdays, sales were down just 3.5
percent year over year.
The metro areas with the largest declines in sales were
Rochester, NY (-24.2%),
Omaha, NE (-23.5%), and
Fort Lauderdale, FL (-22.4%).
The supply of homes for sale grew 0.5 percent year over year,
the smallest increase in the 10 months inventory has been rising.
Inventory levels were mixed across the country, with 48 metros
seeing a decline and 37 seeing an increase in the number of homes
for sale compared to a year earlier.
The three metro areas with the biggest increases in the number
of homes for sale were all in California: San
Jose (+42.8%), Oxnard
(+26.1%), and Oakland (+25.7%).
The biggest declines were in New Orleans,
LA (-32.0%), Rochester, NY
(-27.8%), and Camden, NJ
(-19.6%).
Even though sales were down from a year ago, the speed at which
homes went off the market matched the all-time record set last
June. Homes that sold last month went under contract after a median
35 days on market, unchanged from last year. The fastest markets in
the nation were Tacoma, WA (7
days), Grand Rapids, MI (7), and
Boston, MA (9).
Many of the markets that were the hottest last year saw an
increase in median time on market in June compared to June 2018:
- San Jose, CA: 26 days, up from
12 days last year
- Denver, CO: 12 days, up from 7
days last year
- Portland, OR: 16 days, up from
12 days last year
- Seattle, WA 11 days, up from 7
days last year
The average sale-to-list price ratio of homes sold hit a new
all-time high in June at 98.8 percent nationally. While the
national sale-to-list price ratio masks regional variation, as the
ratio approaches or exceeds 100%, it generally indicates that
buyers have less leverage, or have had less success, negotiating
prices down.
Other measures still suggest that the market is a little cooler
than a year ago. A quarter (24.9%) of homes sold in June went for
more than list price, down from 28.4 percent a year earlier. In
addition, 26.5 percent of homes listed for sale had a price drop in
June, up from 25.1 percent in June
2018.
To read the full report, including charts and metro-level data
breakdowns, please visit:
https://www.redfin.com/blog/june-2019-housing-market-tracker.
About Redfin
Redfin (www.redfin.com) is a
technology-powered 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 85 major metro areas across the U.S. and Canada. The company has closed more than
$85 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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SOURCE Redfin