{"id":2426,"date":"2010-02-25T17:52:16","date_gmt":"2010-02-26T01:52:16","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=2426"},"modified":"2020-10-06T17:08:45","modified_gmt":"2020-10-07T00:08:45","slug":"february_newsletter_all_heck_breaks_loose_in_real_estate_market","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/february_newsletter_all_heck_breaks_loose_in_real_estate_market\/","title":{"rendered":"February Newsletter: All Heck Breaks Loose In Real Estate Market"},"content":{"rendered":"<p>Howdy Redfinnians!<br \/>\nFor the first time in years lots of pretty houses are coming onto the market, prices posted their seventh small monthly gain, but now demand has suddenly gone missing.<br \/>\nWhat happened? Let&#8217;s dive into the numbers&#8230; But first, the Redfin news: on Wednesday, we expanded to cover the <a href=\"https:\/\/redfin.com\/city\/30772\/OR\/Portland\">Portland real estate market<\/a>, and added the nifty ability on our website to x-out properties you don&#8217;t want to click on again.<br \/>\n<img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2010\/02\/xouts-4.jpg\" alt=\"Real Estate Data\" width=\"600\" height=\"325\" class=\"alignnone size-full wp-image-2427\" srcset=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2010\/02\/xouts-4.jpg 600w, https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2010\/02\/xouts-4-300x163.jpg 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><br \/>\nEnough about us&#8230; onto the data&#8230; brace yourself. It&#8217;s a mess. Even Wall Street and market research analysts are befuddled.<\/p>\n<h2>Buyers Stay In Their Igloos&#8230;<\/h2>\n<p>The shocker was Wednesday&#8217;s Commerce Department announcement that January <a href=\"http:\/\/www.nytimes.com\/2010\/02\/25\/business\/economy\/25econ.html\">new-home sales fell 11%<\/a>, though that was immediately contradicted by more <a href=\"http:\/\/blogs.wsj.com\/developments\/2010\/02\/24\/on-new-home-sales-its-builders-vs-government\/\">optimistic reports from Wall Street analysts and from the home-builders themselves<\/a>.<br \/>\nThe other shoe fell when the Mortgage Bankers Association announced that last week&#8217;s number of loan applications for home purchases <a href=\"http:\/\/www.mortgagebankers.org\/NewsandMedia\/PressCenter\/71948.htm\">dropped to their lowest levels in 13 years<\/a>. The bankers blame the East Coast blizzard for the one-week blip but most economists remain worried about unemployment. Even in the <a href=\"https:\/\/redfin.com\/states\/CA\">California real estate<\/a> market where prices have been rising, <a href=\"http:\/\/www.dqnews.com\/Articles\/2010\/News\/California\/RRCA100218.aspx\">sales have been slow<\/a>.<\/p>\n<h2>&#8230;But Redfin Demand Has Been Strong<\/h2>\n<p>Within Redfin, we don&#8217;t know what to make of this bad news. From December to January, visits to our site increased 34%. We set a record Tuesday for the number of homes we put under contract, which is very unusual for February. And it&#8217;s not just us: of the offers we submitted to listing agents in January, 54% faced competition, which almost always results in the winner having to pay above the asking price.<\/p>\n<h2>Prices Increase Nationwide for Seventh Straight Month<\/h2>\n<p>Meanwhile, prices held steady in December. The <a href=\"https:\/\/redfin.com\/definition\/case-shiller-index\">Case-Shiller data<\/a> released Tuesday for December 2009 documented a seventh straight month of price increases nationwide, with the strongest gains in California and the <a href=\"https:\/\/redfin.com\/city\/1826\/MA\/Boston\">Boston real estate<\/a> area, while the <a href=\"https:\/\/redfin.com\/city\/29470\/IL\/Chicago\">Chicago real estate<\/a> market and the <a href=\"https:\/\/redfin.com\/city\/30749\/NY\/New-York\">New York City real estate<\/a> market declined.<br \/>\n<img decoding=\"async\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2010\/02\/CaseShiller.jpg\" alt=\"Case Shiller\" width=\"580\" height=\"300\" class=\"alignnone size-full wp-image-2428\" srcset=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2010\/02\/CaseShiller.jpg 580w, https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2010\/02\/CaseShiller-300x155.jpg 300w\" sizes=\"(max-width: 580px) 100vw, 580px\" \/><br \/>\nFor the year, prices dropped 3.1% nationwide, but actually increased nearly 5% in the Bay Area. The Seattle area was down nearly 8% for the year. As always, we present the seasonally adjusted data, which adjust for summer-time price increases and winter-time declines.<\/p>\n<table style=\"font-size: 12px;line-height: 16px\" border=\"0\" cellspacing=\"0\" cellpadding=\"4\" width=\"100%\">\n<tr bgcolor=\"#e7e7e3\">\n<td><strong>Location<\/strong><\/td>\n<td><strong>MoM Change<\/strong><\/td>\n<td><strong>YoY Change<\/strong><\/td>\n<td><strong>Date of Max<\/strong><\/td>\n<td><strong>Change from Max<\/strong><\/td>\n<td><strong>Prices Last at This<br \/>Level in&#8230;<\/strong><\/td>\n<td><strong>Consec. Mos.<br \/>of Increase<\/strong><\/td>\n<\/tr>\n<tr bgcolor='#f7f7f3'>\n<td><strong><a href=\"https:\/\/redfin.com\/city\/11203\/CA\/Los-Angeles\">LA Real Estate Market<\/a><\/strong><\/td>\n<td>1.4%<\/td>\n<td>-0.1%<\/td>\n<td>Apr-06<\/td>\n<td>-37.5%<\/td>\n<td>Nov-03<\/td>\n<td>7<\/td>\n<\/tr>\n<tr>\n<td><strong><a href=\"https:\/\/redfin.com\/city\/16904\/CA\/San-Diego\">San Diego Real Estate Market<\/a><\/strong><\/td>\n<td>1.1%<\/td>\n<td>2.7%<\/td>\n<td>Mar-06<\/td>\n<td>-37.5%<\/td>\n<td>Jan-03<\/td>\n<td>7<\/td>\n<\/tr>\n<tr bgcolor='#f7f7f3'>\n<td><strong><a href=\"https:\/\/redfin.com\/city\/17151\/CA\/San-Francisco\">Bay Real Estate Market<\/a><\/strong><\/td>\n<td>1.0%<\/td>\n<td>4.8%<\/td>\n<td>Feb-06<\/td>\n<td>-37.4%<\/td>\n<td>May-02<\/td>\n<td>9<\/td>\n<\/tr>\n<tr>\n<td><strong><a href=\"https:\/\/redfin.com\/city\/12839\/DC\/Washington-DC\">DC Real Estate Market<\/a><\/strong><\/td>\n<td>0.5%<\/td>\n<td>1.9%<\/td>\n<td>Mar-06<\/td>\n<td>-28.9%<\/td>\n<td>Apr-04<\/td>\n<td>1<\/td>\n<\/tr>\n<tr bgcolor='#f7f7f3'>\n<td><strong><a href=\"https:\/\/redfin.com\/city\/30756\/GA\/Atlanta\u200e\">Atlanta Real Estate Market<\/a><\/strong><\/td>\n<td>0.0%<\/td>\n<td>-3.9%<\/td>\n<td>Apr-07<\/td>\n<td>-19.7%<\/td>\n<td>May-01<\/td>\n<td>0<\/td>\n<\/tr>\n<tr>\n<td><strong><a href=\"https:\/\/redfin.com\/city\/29470\/IL\/Chicago\">Chicago Real Estate Market<\/a><\/strong><\/td>\n<td>-0.6%<\/td>\n<td>-7.2%<\/td>\n<td>Feb-07<\/td>\n<td>-24.8%<\/td>\n<td>Dec-02<\/td>\n<td>0<\/td>\n<\/tr>\n<tr bgcolor='#f7f7f3'>\n<td><strong><a href=\"https:\/\/redfin.com\/city\/1826\/MA\/Boston\">Boston Real Estate Market<\/a><\/strong><\/td>\n<td>0.9%<\/td>\n<td>0.5%<\/td>\n<td>Nov-05<\/td>\n<td>-14.4%<\/td>\n<td>Sep-03<\/td>\n<td>2<\/td>\n<\/tr>\n<tr>\n<td><strong><a href=\"https:\/\/redfin.com\/city\/30749\/NY\/New-York\">New York Real Estate Market<\/a><\/strong><\/td>\n<td>-0.5%<\/td>\n<td>-6.3%<\/td>\n<td>May-06<\/td>\n<td>-20.8%<\/td>\n<td>May-04<\/td>\n<td>0<\/td>\n<\/tr>\n<tr bgcolor='#f7f7f3'>\n<td><strong><a href=\"https:\/\/redfin.com\/city\/30772\/OR\/Portland\">Portland Real Estate Market<\/a><\/strong><\/td>\n<td>0.5%<\/td>\n<td>-5.4%<\/td>\n<td>May-07<\/td>\n<td>-19.0%<\/td>\n<td>Jun-05<\/td>\n<td>3<\/td>\n<\/tr>\n<tr>\n<td><strong><a href=\"http:\/redfindevelop.wpengine.com\/city\/16163\/WA\/Seattle\/\">Seattle Real Estate Market<\/a><\/strong><\/td>\n<td>0.2%<\/td>\n<td>-7.9%<\/td>\n<td>May-07<\/td>\n<td>-22.2%<\/td>\n<td>Apr-05<\/td>\n<td>3<\/td>\n<\/tr>\n<tr bgcolor='#f7f7f3'>\n<td><strong>20 City Market<\/strong><\/td>\n<td>0.3%<\/td>\n<td>-3.1%<\/td>\n<td>May-06<\/td>\n<td>-29.3%<\/td>\n<td>Sep-03<\/td>\n<td>7<\/td>\n<\/tr>\n<\/table>\n<p><\/p>\n<h2>Foreclosures Decline, But This is Probably Seasonal<\/h2>\n<p>The real estate boogeyman &#8212; foreclosures &#8212; hid under the bed during the holiday season. In the fourth-quarter, delinquent loans declined 4%, as <a href=\"http:\/\/blogs.wsj.com\/developments\/2010\/02\/19\/is-the-end-of-the-foreclosure-crisis-in-sight\/\">mortgage bankers predicted &#8220;the beginning of the end&#8221;<\/a> of an unprecedented wave of foreclosures. January foreclosure filings declined 10% but RealtyTrac argued that this decline was largely seasonal. If the supply of foreclosures decreases, prices will be much more likely to increase. We still believe there are plenty of foreclosures ahead, albeit mostly in off-coast <a href=\"https:\/\/redfin.com\/states\/CA\">California<\/a>, as well as <a href=\"https:\/\/redfin.com\/states\/NV\">Nevada<\/a>, <a href=\"https:\/\/redfin.com\/states\/AZ\">Arizona<\/a> and <a href=\"https:\/\/redfin.com\/states\/FL\">Florida<\/a>.<\/p>\n<h2>Rates Increase a Bit, But Still Pretty Low (And Likely to Stay That Way)<\/h2>\n<p>As <a href=\"https:\/\/redfin.com\/blog\/2010\/01\/january_2010_newsletter_strap_in_were_headed_for_a_wild_ride.html\">we predicted in last month&#8217;s newsletter<\/a>, mortgage rates increased slightly this past month, from 4.98% at the end of January to 5.05% this week:<br \/>\n<img decoding=\"async\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2010\/02\/MortgageRates.png\" alt=\"2010 Mortgage Rates\" width=\"428\" height=\"300\" class=\"alignnone size-full wp-image-2429\" srcset=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2010\/02\/MortgageRates.png 428w, https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2010\/02\/MortgageRates-300x210.png 300w\" sizes=\"(max-width: 428px) 100vw, 428px\" \/><br \/>\nYou can see from the graph that rates are still very low by historical standards. And despite worries we&#8217;ve had in the past, they&#8217;ll likely stay that way for at least a few months, if not all year. As concerns have mounted over the solvency of Greece&#8217;s government, the U.S. has been firm about <a href=\"http:\/\/www.nytimes.com\/2010\/02\/25\/business\/economy\/25fed.html\">its intention to keep rates low<\/a>.<br \/>\nThe bottom line is that prices have been increasing and money is cheap &#8212; and will probably stay that way &#8212; but some of the fundamental trends are disturbing: foreclosures dropped but will likely increase again soon, and unemployment is taking its toll on demand.<br \/>\nWhat will happen next? Tune in next month to find out! As always, if you have any questions &#8212; or if there&#8217;s other data you&#8217;d like to see included in the newsletter &#8212; just write back and I&#8217;ll try to help as best I can.<br \/>\nBest, Glenn<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Howdy Redfinnians! For the first time in years lots of pretty houses are coming onto the market, prices posted their seventh small monthly gain, but now demand has suddenly gone missing. What happened? Let&#8217;s dive into the numbers&#8230; But first, the Redfin news: on Wednesday, we expanded to cover the Portland real estate market, and [&hellip;]<\/p>\n","protected":false},"author":13349,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[8],"tags":[32],"dashboard":[],"coauthors":[],"class_list":["post-2426","post","type-post","status-publish","format-standard","hentry","category-housing-market-news","tag-housing-market-tracker"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>February Newsletter: All Heck Breaks Loose In Real Estate Market - Redfin Real Estate News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.redfin.com\/news\/february_newsletter_all_heck_breaks_loose_in_real_estate_market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"February Newsletter: All Heck Breaks Loose In Real Estate Market\" \/>\n<meta property=\"og:description\" content=\"Howdy Redfinnians! For the first time in years lots of pretty houses are coming onto the market, prices posted their seventh small monthly gain, but now demand has suddenly gone missing. What happened? Let&#8217;s dive into the numbers&#8230; But first, the Redfin news: on Wednesday, we expanded to cover the Portland real estate market, and [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.redfin.com\/news\/february_newsletter_all_heck_breaks_loose_in_real_estate_market\/\" \/>\n<meta property=\"og:site_name\" content=\"Redfin Real Estate News\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/redfin\" \/>\n<meta property=\"article:published_time\" content=\"2010-02-26T01:52:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-10-07T00:08:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2010\/02\/xouts-4.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"325\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Lisa Taylor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@redfin\" \/>\n<meta name=\"twitter:site\" content=\"@redfin\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Lisa Taylor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.redfin.com/news\\\/february_newsletter_all_heck_breaks_loose_in_real_estate_market\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.redfin.com/news\\\/february_newsletter_all_heck_breaks_loose_in_real_estate_market\\\/\"},\"author\":{\"name\":\"Lisa Taylor\",\"@id\":\"https:\\\/\\\/www.redfin.com/news\\\/#\\\/schema\\\/person\\\/9d2dd7e989b47ade943ec9e71e3b8296\"},\"headline\":\"February Newsletter: All Heck Breaks Loose In Real Estate Market\",\"datePublished\":\"2010-02-26T01:52:16+00:00\",\"dateModified\":\"2020-10-07T00:08:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.redfin.com/news\\\/february_newsletter_all_heck_breaks_loose_in_real_estate_market\\\/\"},\"wordCount\":773,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.redfin.com/news\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.redfin.com/news\\\/february_newsletter_all_heck_breaks_loose_in_real_estate_market\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.redfin.com\\\/news\\\/wp-content\\\/uploads\\\/2010\\\/02\\\/xouts-4.jpg\",\"keywords\":[\"Housing Market Tracker\"],\"articleSection\":[\"Housing Market News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.redfin.com/news\\\/february_newsletter_all_heck_breaks_loose_in_real_estate_market\\\/#respond\"]}],\"copyrightYear\":\"2010\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/www.redfin.com/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.redfin.com/news\\\/february_newsletter_all_heck_breaks_loose_in_real_estate_market\\\/\",\"url\":\"https:\\\/\\\/www.redfin.com/news\\\/february_newsletter_all_heck_breaks_loose_in_real_estate_market\\\/\",\"name\":\"February Newsletter: All Heck Breaks Loose In Real Estate Market - 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She joined the company in 2009 as the first marketing hire and built Redfin's email marketing, customer research and home-buying and selling class programs. 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