The number of homes newly listed for sale in April rose 5.7 percent, a welcome sign for buyers after a lackluster number of new listings went on the market in the first three months of 2018. The new listings were not sufficient to overcome the inventory shortage. The supply of homes for sale declined 9.2 percent year over year in April. Competition escalated as buyers vied for a limited number of properties--just 2.8 months of supply remained at the end of the month compared to the six months that generally signals a balanced market.
The typical home that sold last month went under contract in 36 days, six days faster than a year earlier and faster than any month Redfin has recorded going back to 2010. Among homes that sold last month, 26.2 percent sold above their list price, up from 24.9 percent last April. The average sale-to-list price ratio was 98.8 percent, also the highest on record.
"Despite rising prices and low inventory, sales in 2018 so far are slightly higher than last year, which was the best year on record since the 2006 housing boom," said Redfin chief economist
For the sixth month in a row,
"Our region is experiencing a great resurgence and the economy is diversifying with new companies moving in and expanding thanks to the affordable cost of doing business and ample workforce. As home prices rise, it can be tough for local buyers to compete with buyers from elsewhere who have reverse sticker shock and loaded pockets from selling a home in
Other April Highlights
Denver, COwas the fastest market, with half of all homes pending sale in just 6 days, the same pace for Denverin April of last year. Seattle, WAwas the next fastest market with 7 median days on market, followed by San Jose, CA, Grand Rapids, MIand Tacoma, WAat 9 days.
- The most competitive market in April was
San Jose, CAwhere 84.6% of homes sold above list price, followed by 78.6% in San Francisco, CA, 74.6% in Oakland, CA, 64.0% in Seattle, WA, and 50.8% in Tacoma, WA.
San Jose, CAhad the nation's highest price growth, rising 26.2% since last year to $1,210,000. Detroit, MIhad the second highest growth at 21.2% year-over-year price growth, followed by Las Vegas, NV(17%), Seattle, WA(14.7%), and Tacoma, WA(13.4%).
- No metros that have a population of at least 750,000 had price declines in April.
- 12 out of 73 metros saw sales surge by double digits from last year.
Louisville, KYled the nation in year-over-year sales growth, up 20.5%, followed by Grand Rapids, MI, up 18.3%. Detroit, MIrounded out the top three with sales up 15.5% from a year ago. Allentown, PAsaw the largest decline in sales since last year, falling 15.7%. Home sales in Long Island, NY and Rochester, NYdeclined by 14.0% and 12.8%, respectively.
Indianapolis, INhad the largest decrease in overall inventory, falling 42.1% since last April. Rochester, NY(-41.1%), Buffalo, NY(-37.5%), and San Jose, CA(-30.1%) also saw far fewer homes available on the market than a year ago. Baton Rouge, LAhad the highest increase in the number of homes for sale, up 24.6% year over year, followed by Portland, OR(22.7%) and Allentown, PA(20.7%).
- To see trends in sellers' pricing strategies, we compare the list price to the Redfin Estimate, Redfin's automated home-value estimate with the industry's lowest published error rate for listed homes.
- The median list price-to-Redfin Estimate ratio was 92.5% in
San Francisco, CA, the lowest of any market. This indicates the typical home for sale in April was listed at 93.7% of its estimated value. Only 6.3% of homes in San Francisco, CAwere listed for more than their Redfin Estimate.
- Conversely, the median list price-to-Redfin Estimate ratio was 102.5% in
Miami, FLand 102.2% in West Palm Beach, FL, which means sellers are listing their homes for more than the estimated value in those metro areas. In Miami, FL, 85.1% of homes were listed above their Redfin Estimate, the highest percentage of any metro.
To read the full report, complete with data and charts, please visit the following link: https://www.redfin.com/blog/2018/05/market-tracker-april-2018.html.
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 automated home-value estimate with the industry's lowest published error rate for listed homes. 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
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
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Redfin Journalist Services: Alina Ptaszynski, 206-588-6863, firstname.lastname@example.org