Last Month was the Fastest January Housing Market on Record
SEATTLE — Feb. 16, 2017 — U.S. home prices rose 7.0 percent in January and home sales gained 5.6 percent over last year, according to Redfin (www.redfin.com), the next-generation real estate brokerage.
Inventory fell 12 percent compared to last year, the largest annual drop in the number of homes for sale since April 2013. The dearth of supply was due in part to a 5.1 percent annual decline in new listings. But last month was also the fastest January on record since Redfin began tracking this measure in 2010. The typical home sold in 59 days -- seven days faster than last year and two weeks faster than January 2015.
"Buyers jumped through three hurdles last month: rising prices, low inventory and a fast market," said Redfin Chief Economist Nela Richardson. "Sellers, however, are still warming the bench as the supply picture looks weaker than demand. This was the first January in three years in which new listings fell short of the previous year."
The national trend of strong home sales and price growth in January was driven by the country's more affordable markets. Double-digit sales and price growth primarily occurred in metro areas with a median sale price under $300,000 such as Lakeland, Florida, Poughkeepsie, New York, and Memphis, Tennessee. The highest competition continued to take place in the tech hubs of the West Coast.
Regional January Highlights
- Denver, CO, was the fastest market, with half of all homes pending sale in just 23 days, down from 43 days a year earlier. Seattle, WA, and Oakland, CA, were the next fastest markets, with 26 and 27 median days on market, respectively, followed by Grand Rapids, MI (29), and Fresno, CA (32).
- Prices were most likely to escalate in San Jose, CA, where 48.8% of homes sold above list price, followed by 48.5% in Oakland, CA, 47.7% in San Francisco, CA, 37.3% in Seattle, WA, and 34.4% in Tacoma, WA.
- Dallas-Fort Worth, TX, had the nation's highest price growth, rising 17% since last year to $233,995. Cleveland, OH, had the second-highest growth at 15.4% year-over-year price growth, followed by Cincinnati, OH (15%), Salt Lake City, UT (14.9%), and Ogden, UT (14.3%).
- Two metros, Baton Rouge, LA (-6.4%), and Allentown, PA (-2.8%), saw year-over-year price declines in January.
- Thirty-three out of 90 metros saw sales surge by double digits from last year. Lakeland, FL, led the nation in year-over-year sales growth, up 28.7%, followed by Poughkeepsie, NY, up 28.0%. Memphis, TN, rounded out the top three with sales up 26.1% from a year ago.
- Columbia, SC, saw the largest decline in sales since last year, falling 65.0%. Home sales in Grand Rapids, MI, and Buffalo, NY, declined by 14.3% and 9.9%, respectively.
- Buffalo, NY, had the largest decrease in overall inventory, falling 39.8% since last January. Portsmouth, NH (-35.2%), Rochester, NH (-34.7%), and Omaha, NE (-34.6%), also saw far fewer homes available on the market than a year ago.
- Provo, UT, had the highest increase in the number of homes for sale, up 33.7% year over year, followed by San Jose, CA (17.0%), and Raleigh, NC (16.7%).
To read the full report, complete with data and charts, please visit the following link: https://www.redfin.com/blog/2017/02/market-tracker-january-2017.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. 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 $40 billion in home sales through 2016.
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