SEATTLE--(BUSINESS WIRE)--Home prices in August were up 4.4 percent year over year, the slowest pace of growth seen so far in 2016, according to Redfin (www.redfin.com), the next-generation real estate brokerage. The fact that price growth slowed despite strong sales and shrinking inventory indicates that buyers are gaining pricing power as we head into fall.
“The market is hitting a sweet spot in the third quarter, in which there is both high buyer demand for homeowners looking to sell and cooling prices for buyers ready to purchase,” said Redfin chief economist Nela Richardson.
Home sales increased 14.2 percent in August from a year ago, a sizeable rebound from July’s 11 percent decline and a return to this year’s trend of healthy sales growth.
Overall home inventory continued to decline for the 11th-straight month with an 8 percent year-over-year drop, the widest margin of 2016. After taking a step back from the market in July, sellers were active in August. New listings were up 2.4 percent, the biggest increase in five months, but some sellers had expectations that late-summer buyers were unwilling to meet.
“Some sellers who waited until summer to list after watching the hot spring market became too big for their britches,” said Adrian Smith, a Redfin real estate agent in Atlanta. “They expected top dollar, cash buyers and bidding wars and were willing to wait for the strongest offer. But late-summer buyers were even more patient and less willing to settle. There’s a big pool of buyers in the market now, but most are able and willing to wait for the right home at the right price.”
Seattle, WA, was the fastest market in August, when half of all homes there went pending sale in just 10 days, down from 14 days a year earlier. Denver, CO, and Portland, OR, were the next fastest markets, with 11 and 13 median days on market, respectively.
The Bay Area was home to the most competitive markets, with 61.8% of homes selling above list price in Oakland, 60.0% in San Francisco and 58.4% in San Jose.
To read the full report, complete with data and charts, please visit the following link: https://www.redfin.com/blog/2016/09/home-sales-rebounded-in-august-continuing-a-2016-trend-toward-normal.html.
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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 customer'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 most accurate home-value estimate online, the Redfin Estimate. 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 $31 billion in home sales to date, and saved customers more than $335 million in fees, and counting.
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