Market Overview

Redfin: Home Sales Fell 3.5 Percent in July, the 22nd Consecutive Month to Post an Inventory Decline

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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.

This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20170817005647/en/

A home for sale in Baltimore. (Photo: Business Wire)

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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