Market Overview

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

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

(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.

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.

                         
Market Summary       August 2017       Month-Over-Month       Year-Over-Year
Median sale price       $292,900       0.0%       7.7%
Homes sold       268,800       2.3%       -5.5%
New listings       302,400       -2.2%       -1.0%
All Homes for sale       749,100       -4.4%       -12.4%
Median days on market       39       2       -5
Months of supply       2.8       -0.2       -0.2
Sold above list       24.9%       -1.7%       1.3%
Median Off-Market Redfin Estimate       $250,600       0.7%        
Average Sale-to-list       98.5%       -0.1%       0.4%
                 

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, please visit the
following link: https://www.redfin.com/blog/2017/09/market-tracker-august-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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