Redfin: October Housing Market Rewarded Sellers with a 7 Percent Price Increase the Largest Annual Gain in 10 Months

Home sales down 3 percent; Inventory down 9 percent

Prices increased by double digits in nine Florida metros

Grand Rapids, Michigan ranked among the fastest housing markets, alongside Seattle, Denver, Oakland and Portland

SEATTLE--()--U.S. home prices rose 7 percent year over year to a median of $269,200 in October, according to Redfin (www.redfin.com), the next-generation real estate brokerage. This was the strongest annual price growth since December 2015. After rallying in recent months, home sales took a turn in October, dipping 3.2 percent compared to last year.

The number of homes for sale continued to dwindle. Inventory dropped 8.6 percent compared to last year, marking 13 consecutive months of annual declines and the largest year-over-year decline since May 2013. The total supply of homes for sale suffered in part due to a lack of fresh inventory. The number of homes listed last month was 6.9 percent lower than in October 2015.

“While the October market rewarded sellers, their gains came at a cost,” said Redfin chief economist Nela Richardson. “With no new supply surge on the horizon, finding an affordable home will continue to be an unrelenting challenge for first-time buyers for the remainder of the year and into 2017. The good news is that mortgage rates continue to provide an affordability cushion, giving buyers a bit of wiggle room against budget constraints.”

Last month, homes spent a median 49 days on the market, five fewer than a year earlier. More than one in five (21.3%) homes went under contract within two weeks in October, up from 19 percent a year earlier. Another one in five (20.1%) homes sold for more than their asking price last month, up from 18.9 percent a year earlier.

Regional Highlights from October:

  • Six Florida metro areas led the nation’s year-over-year home price growth: Deltona (18.4%), West Palm Beach (14.8%), Fort Lauderdale (14.2%), Tampa (14.2%), Fort Myers (14.1%) and Lakeland (13.6%).
  • Seattle and Denver were the nation’s fastest markets, with homes going under contract in a median 13 and 15 days, respectively. Grand Rapids, MI (17 days) and Oakland, CA (17 days) beat out Portland, OR (19 days), which consistently ranked among the three hottest markets this year. Ranked by the percentage of homes going under contract within two weeks, Seattle (67.6%) holds the top spot, followed by Grand Rapids (61.8%), Denver (53.8%), Portland (46.9%) and Oakland (43.6%).
  • Inventory decreased the most year over year in Buffalo, NY, falling 32.4% since last October. St. Louis, MO saw the greatest increase in the number of homes for sale, up 24.6% over last year, boosted by a 10% annual increase in new listings.

To read the full report, complete with data and charts, please visit the following link: https://www.redfin.com/blog/2016/11/the-october-housing-market-rewarded-sellers-with-the-largest-price-increase-in-10-months.html

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About Redfin Corporation

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 highly accurate automated home-value 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.

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.

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Contacts

Redfin Journalist Services:
Jeffery Marino, 206-588-6863
press@redfin.com

Release Summary

U.S. home prices rose 7 percent year over year this October while inventory declined for the 13th consecutive month and home sales reversed course, falling 3.2 percent compared to last year.

Contacts

Redfin Journalist Services:
Jeffery Marino, 206-588-6863
press@redfin.com