Prices gained less than 5% in August
Home prices grew by 4.7% in August compared to a year earlier as price appreciation continued its slowdown.
Price growth year-over-year has been trending lower for 6 months and according to Redfin last month’s gain was the lowest since August 2014.
Meanwhile, sales were down 2.4%, while inventory declined by the smallest amount (3.4%) in 29 months. New listings rose 3.3%.
"While sale prices moderate, new listing prices keep accelerating," said Redfin senior economist Taylor Marr. "This mismatch between seller expectations and reality is fueling an increase in price drops in metros across the country."
The share of homes sold with a price drop was 30% (up 3.4 percentage points year-over-year) while those that sold above asking fell to 23.6% compared to 25% a year ago.
|
Market Summary |
August 2018 |
Month-Over-Month |
Year-Over-Year |
|
Median sale price |
$300,900 |
-0.6% |
4.7% |
|
Homes sold |
266,400 |
-2.1% |
-2.4% |
|
New listings |
302,700 |
-1.1% |
3.3% |
|
All Homes for sale |
723,200 |
-1.0% |
-3.4% |
|
Median days on market |
37 |
2 |
-3 |
|
Months of supply |
2.7 |
0 |
0 |
|
Sold above list |
23.6% |
-2.6% |
-1.3% |
|
Median Off-Market Redfin Estimate |
$293,700 |
0.2% |
8.0% |
|
Average Sale-to-list |
98.4% |
0.0% |
-0.1% |
Market shift in San Jose, Seattle, Portland
Redfin says there has been an interesting shift in the market in three metros: San Jose and Seattle posted a rise in supply of homes of nearly 50% year-over-year; while in Portland, inventory increased 25%.
The increase in inventory is the combination of more people putting their homes on the market as fewer buyers are stepping up to purchase. San Jose, Seattle, and Portland saw respective sales declines of 16%, 19%, and 6%.
In Seattle, home prices were up 6% year over year, the lowest price growth in nearly three years. In San Jose and Portland, home prices rose 22% and 7% year-over-year respectively.
Metro winners, losers
San Jose, CA had the nation's highest price growth, rising 22.3% since last year to $1,189,000. Las Vegas had the second highest growth at 12.2% year-over-year, followed by Tacoma, WA (12.1%), San Francisco (12%), and Grand Rapids, MI (10.8%). Chicago was the only major metro to see a price decline in August (-0.5%).
For sales, Seattle saw the largest decline compared to last year (-18.5%) while San Jose, CA and West Palm Beach, FL declined by 15.6% and 12.5%, respectively.
Three out of 71 metros saw sales surge by double digits from last year, led by Houston (37.2%) following a slump a year ago caused by Hurricane Harvey.
