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Redfin: Home Prices up 5 Percent in July as Inventory Becomes More ScarceHome prices were up 5.3 percent in July from last year, according to the latest report from Redfin (www.redfin.com), the next-generation real estate brokerage. A dearth of housing inventory persists as the number of homes newly listed in July fell 6 percent, the largest annual decrease so far this year. The total number of homes fell by 6.6 percent in July, the third consecutive month that inventory fell by more than 6 percent. Sales fell 10.9 percent year over year, the biggest national sales decline since April 2011, but the slowdown last month has more to do with this year's calendar than buyer demand. Because the month started on a Friday, there were five full weekends plus one national holiday, leaving only 20 days available for home closings. To determine just how much of the drop in sales can be attributed to the calendar, Redfin analysts calculated the average frequency at which home sales closed on each day in each month since 2010. As a result, Redfin analysts estimate that all else equal, sales would have fallen by 7.5 percent this July from last year simply because of the way the days laid out on the calendar. "There is a weekly pattern to real estate that is highly affected by the days of the week," said Nela Richardson (News - Alert), Redfin chief economist. "In general, buyers tour on the weekends, make offers on Mondays and Tuesdays and close on Fridays. Last month was composed of more days for touring and fewer for closing, and the number of sales recorded took a hit because of it." "Yet not all of last month's sales decline was due to the calendar," said Richardson. "Election-year anxiety, stock market queasiness and general economic malaise combined with a lack of available homes on the market also drove sales lower. We attribute roughly a third of July's sales decline to these market trends." Despite the downward pressure, some markets still saw strong sales activity. Camden, NJ led the nation in year-over-year sales growth, up 28.5%, followed by St. Louis, MO, up 18.9%, and Baltimore, MD, where sales grew 6.2% from a year ago. To read the full report, please visit: https://www.redfin.com/blog/2016/08/home-sales-fell-11-percent-in-july-but-theres-good-reason-not-to-panic.html Redfin also took an in-depth look at home prices, inventory and sales across neighborhoods for four cities: Chicago, Los Angeles, San Francisco and Washington, D.C. Connect with Redfin
Facebook 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 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 industry's most accurate home-value estimate, the Redfin Estimate. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commission. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $31 billion in home sales, 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. To be added to Redfin's press release distribution list, subscribe here. View source version on businesswire.com: http://www.businesswire.com/news/home/20160818005314/en/ |
