The difference in supply changes between affordable and high-priced homes is more drastic. For the most affordable tier, supply was down 14.5 percent year over year in June. It was up by 9.7 percent for the most expensive tier.
For the most expensive tier of homes, supply has been rising on a year-over-year basis since mid-2013. For the most affordable tier, supply has been dropping since at least 2012, by double digits most months.
The fact that prices for the most affordable homes around the country are rising faster than they are for the most expensive homes is one sign of the housing affordability crisis that has taken hold of many parts of the country. Overall market conditions have improved for homebuyers: Home prices were up 3.4 percent in June, a modest growth rate compared to the 7 to 9 percent price jumps regularly seen in early 2018, and mortgage interest rates are lower than they've been in nearly two years. But the rampant home-price growth in the most affordable segment of the housing market is problematic for working- and middle-class buyers, the group of people who would have the most trouble affording any home.
"Now that the economic expansion is in its 10th year, some working- and middle-class Americans are finally starting to see wage increases significant enough to ready them buy their first homes," said Redfin chief economist
There were just three metro areas in Redfin's analysis where home prices for the most affordable homes fell in June. In
Dropping prices and rising inventory for the most affordable homes follow overall housing market trends in the two
Prices for the most expensive third of homes dropped 1.6 percent in
"I've been feeling a slowdown in the Bay Area the past few months. The beginning of summer feels like the end of summer usually does, with prices coming down and inventory up," said Redfin agent
For 90 major metro areas, Redfin divided each month's home sales into three equal-sized tiers based on sale price and calculated the average sale price of all homes within each tier. The cutoff for each of the price tiers varied by month and metro area. For statistics on inventory and inventory growth, analysts divided all homes that were newly listed in 2015 into three equal-sized tiers based on list price. They assigned all homes for sale in a given month to the 2015 price tiers to calculate inventory in each tier. The cutoff for each of the tiers varied by metro area. To be included in the metro-level reporting, a metro had to have at least 300 homes sold in June.
To read the full report, including a breakdown of the metro areas that stand out in terms of price and inventory change for the most affordable and most expensive groups of homes and a full methodology, please visit:
Redfin (www.redfin.com) is a technology-powered 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 85 major metro areas across the U.S. and
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, Erin Osgood, 206-588-6863, email@example.com