National home prices rose 7.8 percent in November as inventory
declined 12.8 percent
Pace and competition in housing market continued to accelerate in
November after 26 months of inventory declines
Sonoma County housing market felt impact of October wildfires as
inventory plunged 47 percent
In Ventura and Santa Barbara counties where wildfires are
threatening homes, inventory has declined by double-digits for three
months straight and fires could worsen the inventory shortage
San Jose prices climbed 23 percent and competition reached new
heights in November
SEATTLE--(BUSINESS WIRE)--Dec. 14, 2017--
(NASDAQ: RDFN) — Home
price growth was strong in November, up 7.8 percent from last year,
according to Redfin (www.redfin.com),
the next-generation real estate brokerage. The median sale price was
$292,000 across the markets Redfin serves. Sales were down 1.3 percent.
The number of homes for sale declined 12.8 percent compared to a year
ago, marking 26 months in a row of inventory declines.
“Overall, 2017 has been an uneven year for home sales. The year started
out strong, but a combination of low inventory and weather events
overtook sales growth; sales have been flat to declining in six out of
the past 11 months,” said Redfin chief economist Nela Richardson. “The
good news is markets have been quick to recover from severe weather
events, even as challenges remain. For example, Houston home sales were
up 4.3 percent in November from a year ago, and Tampa sales were up 6.1
percent. We are hopeful that Southern California markets show the same
level of resilience in the aftermath of wildfires there.”
The number of homes newly listed for sale in November increased a modest
1.1 percent. Any increase in new listings is welcome news for buyers,
however, the number of homes put on the market in November wasn’t enough
to put a dent in the long-standing inventory shortage. There were 3.1
months of supply in November, far below the six months of supply that
represent a market balanced between buyers and sellers. Nationally, the
typical home spent 46 days on the market, four days fewer than last
2017 has been the fastest market on record and if current trends
continue, Redfin predicts 2018
will be even faster.
Wildfires Threaten California Communities Already Facing Inventory
In parts of Los Angeles, Ventura and Santa Barbara counties, hundreds
of homes have been destroyed by wildfires and hundreds more are
under threat from fires that remain uncontained. While it is too early
to know how many families and homes will be impacted, we do know these
counties are already facing a shortage of homes for sale. Families who
are displaced by the wildfires will find it challenging to find another
home for sale nearby.
In Ventura County in November, inventory was down 17.6 percent and
prices grew 9.8 percent year over year to a median of $600,000. In Santa
Barbara County, inventory was down 23.3 percent and prices grew 6.8
percent year over year to a median of $575,000. The fires will cause
further stress in an already tight housing market.
“The fires have had a big impact on the people and communities in and
around Ventura, Ojai and Santa Barbara,” said Redfin
agent John Venti. “Our already low inventory levels are likely to
take a beating in the coming months not only from the loss of homes but
also the disruption of life and business in the area. A few prospective
home sellers have texted me as they were being evacuated to cancel our
listing consultation appointments. But these fires, devastating as they
are, are temporary. I’m optimistic that people will resume their holiday
festivities and business as usual as soon as the fires are extinguished
and the air clears.”
The impact of the October wildfires in Northern California was seen in
November market data. In Santa Rosa, one of the hardest hit cities,
inventory fell 46.6 percent in November from a year prior, a 27.8
percent drop from October. Across Sonoma County, inventory declined 31.2
percent year over year and prices rose 15.2 percent to a median of
$633,000. The typical home in Sonoma County sold for 101.6 percent of
the asking price, the highest sale-to-list price ratio since 2013. This
spike in competition is unusual for the November market and likely
related to the fires.
Home sales were up 8 percent year over year in Santa Rosa and 6.4
percent in Sonoma County in November. December sales in the affected
areas may decline as a result of the fire activity.
Other November Highlights
The most competitive market in November was San Jose, CA where 75.9%
of homes sold above list price, followed by 73.1% in San Francisco,
CA, 66.0% in Oakland, CA, 43.5% in Seattle, WA, and 42.0% in Tacoma,
The average sale-to-list price ratio in San Jose was 107.9 percent,
the highest on record in that market since Redfin began tracking this
data in 2009.
San Jose, CA and Seattle, WA were the fastest markets at 12 median
days on market, followed by Oakland, CA (14), Boston, MA (15) and San
Francisco, CA (17).
San Jose, CA had the nation’s highest price growth, rising 23% since
last year to $1,076,000. San Francisco, CA had the second highest
growth at 18.5% year-over-year price growth, followed by Cleveland, OH
(15.9%), Seattle, WA (15.4%), and Salt Lake City, UT (13%).
Honolulu, HI was the only metro with a price decline in November
4 out of 73 metros saw sales surge by double digits from last year.
Richmond, VA led the nation in year-over-year sales growth, up 14.6%,
followed by Honolulu, HI, up 14.2%. Philadelphia, PA rounded out the
top three with sales up 10.8% from a year ago.
Allentown, PA saw the largest decline in sales since last year,
falling 13.3%. Home sales in Grand Rapids, MI and Rochester, NY
declined by 13.1% and 11.0%, respectively.
San Jose, CA had the largest decrease in overall inventory, falling
50.2% since last November. Atlanta, GA (-32.1%), Buffalo, NY (-30.4%),
and Oakland, CA (-29.1%) also saw far fewer homes available on the
market than a year ago.
Salt Lake City, UT had the highest increase in the number of homes for
sale, up 40.3% year over year, followed by Baton Rouge, LA (10.9%) and
Austin, TX (9.1%).
To read the full report, complete with data and charts, please visit the
following link: https://www.redfin.com/blog/2017/12/market-tracker-november-2017.html
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View source version on businesswire.com: http://www.businesswire.com/news/home/20171214005178/en/
Redfin Journalist Services:
Alina Ptaszynski, 206-588-6863