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

Home prices in August were up 7.7 percent from one year earlier, the largest year-over-year price gain since May 2015, according to new data from Redfin. However, the national median sale price in August was $293,000, unchanged from July, while sales in August fell 5.5 percent compared to last year, the steepest decline posted since July 2016.

 

Redfin determined that approximately 25 percent of homes sold in August above their list price. But the quantity of available residential properties on the market was 12.4 percent lower from August 2016, marking the largest year-over-year decline in a 23-month streak of declining inventory. There was a 2.8 months’ supply of housing inventory last month, down one percent from a year earlier.

 

Seattle was the fastest market in August, with nearly half of all homes pending sale in just eight days, down from 10 days from a year earlier, while San Jose was the most competitive market, where 73.8 percent of homes sold above list price. The Houston market saw a 29 percent year-over-year decline in sales due to Hurricane Harvey, while new listings were down 12.2 percent compared to last year.

 

“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 Chief Executive Officer 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.” 

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