{"id":45232,"date":"2016-02-25T05:30:20","date_gmt":"2016-02-25T13:30:20","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=45232"},"modified":"2020-10-06T17:08:20","modified_gmt":"2020-10-07T00:08:20","slug":"home-prices-catch-up-with-online-views","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/home-prices-catch-up-with-online-views\/","title":{"rendered":"Home Prices Catch Up With Online Views"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you\u2019re shopping for a home, chances are you\u2019re looking at homes that are more expensive than the one you would actually buy. We&#8217;ve been monitoring this trend, and now we&#8217;re noticing the gap between the price of homes people look at online and the price of homes people buy is narrowing, especially in markets where home prices have risen the most. <\/span><br \/>\n<span style=\"font-weight: 400;\">Seattle is a great example. In 2014, the median list price of Seattle homes was $429,000. But the median list price of homes viewed on Redfin.com was 11 percent higher, $478,000. Since then, the median list price has jumped to $519,000, but the median price of homes viewed on Redfin.com hasn\u2019t kept pace. So far this year it\u2019s just $6,000 above the list price.<\/span><\/p>\n<h3 style=\"margin-top: 30px; margin-bottom: 0px; padding-top: 0px;\"><a href=\"https:\/\/redfin.com\/city\/16163\">Seattle<\/a><\/h3>\n<table style=\"margin-top: 0px; font-size: 0.8em;\">\n<tbody>\n<tr>\n<th style=\"vertical-align: bottom; width: 96px;\">Year<\/th>\n<th style=\"vertical-align: bottom;\">% Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">$ Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median Price Of Homes Viewed on Redfin.com<\/th>\n<\/tr>\n<tr>\n<th>2014<\/th>\n<td>11%<\/td>\n<td>$49,000<\/td>\n<td>$429,000<\/td>\n<td>$478,000<\/td>\n<\/tr>\n<tr>\n<th>2015<\/th>\n<td>8%<\/td>\n<td>$39,950<\/td>\n<td>$475,000<\/td>\n<td>$515,000<\/td>\n<\/tr>\n<tr>\n<th>2016 (so far)<\/th>\n<td>1%<\/td>\n<td>$6,000<\/td>\n<td>$519,000<\/td>\n<td>$525,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">It makes sense that people look at homes that are out of their price range, especially when you remember that we&#8217;re counting views of home listing pages on Redfin.com and not the number of prospective buyers who come through the door.<\/span><span style=\"font-weight: 400;\"> It\u2019s easy for people to view photos of homes online. People like to look at nice kitchens, even if they don\u2019t intend to buy the home. <\/span><br \/>\n<span style=\"font-weight: 400;\">But what&#8217;s really going on? As home prices skyrocketed in the nation\u2019s hottest markets, the price of homes people have checked out online hasn\u2019t meaningfully changed.<\/span><br \/>\n<span style=\"font-weight: 400;\">\u201cMost serious buyers set up their online home searches based on how much their financing will allow. In Seattle, buyers quickly realize that due to limited inventory, most homes on the market will sell over list price because a bidding war will drive the price up,\u201d said Redfin agent <\/span><a href=\"https:\/\/redfin.com\/real-estate-agents\/allie-howard\"><span style=\"font-weight: 400;\">Allie Howard<\/span><\/a><span style=\"font-weight: 400;\">. \u201cBuyers get used to including an escalation clause in their offer. This leads to buyers looking for homes right at their pre-approval amount, or even a little under, knowing they need room to offer over asking price. When Seattle was a slower market, buyers could look at homes in a higher price range and negotiate on price, but that\u2019s not the case today, especially in really desirable neighborhoods.\u201d<\/span><br \/>\n<span style=\"font-weight: 400;\">Take Boston. So far this year, people in Boston have been looking more at the less expensive homes and less at the more expensive homes. In 2014, the median price of Boston homes viewed online was $40,900 more expensive than the typical home for sale. Two years later, the median price of viewed homes is $9,000 less than Boston\u2019s median list price. During that period, the actual median list price shot up 15 percent, while the median price of viewed homes fluctuated within a range of eight percentage points. This is unusual, but it\u2019s starting to happen elsewhere, too.<\/span><br \/>\n<span style=\"font-weight: 400;\">San Francisco is trending in Boston\u2019s direction. In San Francisco, people have been looking most frequently at homes priced around $1 million since 2014. Also since 2014, the median list price soared from $899,249 to just about that million-dollar mark, while the gap between the price of homes people look at and buy has closed from almost $100,000 to a deficit of $3,000. <\/span><\/p>\n<h3 style=\"margin-top: 30px; margin-bottom: 0px; padding-top: 0px;\"><a href=\"https:\/\/redfin.com\/city\/30756\">Atlanta<\/a><\/h3>\n<table style=\"margin-top: 0px; font-size: 0.8em;\">\n<tbody>\n<tr>\n<th style=\"vertical-align: bottom; width: 96px;\">Year<\/th>\n<th style=\"vertical-align: bottom;\">% Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">$ Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median Price Of Homes Viewed on Redfin.com<\/th>\n<\/tr>\n<tr>\n<th>2014<\/th>\n<td>25%<\/td>\n<td>$59,900<\/td>\n<td>$240,000<\/td>\n<td>$299,900<\/td>\n<\/tr>\n<tr>\n<th>2015<\/th>\n<td>11%<\/td>\n<td>$27,050<\/td>\n<td>$247,950<\/td>\n<td>$275,000<\/td>\n<\/tr>\n<tr>\n<th>2016 (so far)<\/th>\n<td>6%<\/td>\n<td>$15,100<\/td>\n<td>$234,900<\/td>\n<td>$250,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 style=\"margin-top: 30px; margin-bottom: 0px; padding-top: 0px;\"><a href=\"https:\/\/redfin.com\/city\/1826\">Boston<\/a><\/h3>\n<table style=\"margin-top: 0px; font-size: 0.8em;\">\n<tbody>\n<tr>\n<th style=\"vertical-align: bottom; width: 96px;\">Year<\/th>\n<th style=\"vertical-align: bottom;\">% Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">$ Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median Price Of Homes Viewed on Redfin.com<\/th>\n<\/tr>\n<tr>\n<th>2014<\/th>\n<td>9%<\/td>\n<td>$40,900<\/td>\n<td>$479,000<\/td>\n<td>$519,900<\/td>\n<\/tr>\n<tr>\n<th>2015<\/th>\n<td>6%<\/td>\n<td>$31,000<\/td>\n<td>$529,000<\/td>\n<td>$560,000<\/td>\n<\/tr>\n<tr>\n<th>2016 (so far)<\/th>\n<td>-2%<\/td>\n<td>-$9,000<\/td>\n<td>$549,000<\/td>\n<td>$540,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 style=\"margin-top: 30px; margin-bottom: 0px; padding-top: 0px;\"><a href=\"https:\/\/redfin.com\/city\/29470\">Chicago<\/a><\/h3>\n<table style=\"margin-top: 0px; font-size: 0.8em;\">\n<tbody>\n<tr>\n<th style=\"vertical-align: bottom; width: 96px;\">Year<\/th>\n<th style=\"vertical-align: bottom;\">% Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">$ Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median Price Of Homes Viewed on Redfin.com<\/th>\n<\/tr>\n<tr>\n<th>2014<\/th>\n<td>26%<\/td>\n<td>$64,000<\/td>\n<td>$250,000<\/td>\n<td>$314,000<\/td>\n<\/tr>\n<tr>\n<th>2015<\/th>\n<td>20%<\/td>\n<td>$51,000<\/td>\n<td>$259,000<\/td>\n<td>$310,000<\/td>\n<\/tr>\n<tr>\n<th>2016 (so far)<\/th>\n<td>28%<\/td>\n<td>$64,900<\/td>\n<td>$235,000<\/td>\n<td>$299,900<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 style=\"margin-top: 30px; margin-bottom: 0px; padding-top: 0px;\"><a href=\"https:\/\/redfin.com\/city\/5155\">Denver<\/a><\/h3>\n<table style=\"margin-top: 0px; font-size: 0.8em;\">\n<tbody>\n<tr>\n<th style=\"vertical-align: bottom; width: 96px;\">Year<\/th>\n<th style=\"vertical-align: bottom;\">% Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">$ Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median Price Of Homes Viewed on Redfin.com<\/th>\n<\/tr>\n<tr>\n<th>2014<\/th>\n<td>26%<\/td>\n<td>$74,000<\/td>\n<td>$285,000<\/td>\n<td>$359,000<\/td>\n<\/tr>\n<tr>\n<th>2015<\/th>\n<td>23%<\/td>\n<td>$74,900<\/td>\n<td>$325,000<\/td>\n<td>$399,900<\/td>\n<\/tr>\n<tr>\n<th>2016 (so far)<\/th>\n<td>13%<\/td>\n<td>$42,400<\/td>\n<td>$337,500<\/td>\n<td>$379,900<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 style=\"margin-top: 30px; margin-bottom: 0px; padding-top: 0px;\"><a href=\"https:\/\/redfin.com\/city\/15502\">Philadelphia<\/a><\/h3>\n<table style=\"margin-top: 0px; font-size: 0.8em;\">\n<tbody>\n<tr>\n<th style=\"vertical-align: bottom; width: 96px;\">Year<\/th>\n<th style=\"vertical-align: bottom;\">% Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">$ Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median Price Of Homes Viewed on Redfin.com<\/th>\n<\/tr>\n<tr>\n<th>2014<\/th>\n<td>42%<\/td>\n<td>$67,600<\/td>\n<td>$159,900<\/td>\n<td>$227,500<\/td>\n<\/tr>\n<tr>\n<th>2015<\/th>\n<td>42%<\/td>\n<td>$69,000<\/td>\n<td>$165,000<\/td>\n<td>$234,000<\/td>\n<\/tr>\n<tr>\n<th>2016 (so far)<\/th>\n<td>46%<\/td>\n<td>$78,100<\/td>\n<td>$169,900<\/td>\n<td>$248,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 style=\"margin-top: 30px; margin-bottom: 0px; padding-top: 0px;\"><a href=\"https:\/\/redfin.com\/city\/30772\">Portland, OR<\/a><\/h3>\n<table style=\"margin-top: 0px; font-size: 0.8em;\">\n<tbody>\n<tr>\n<th style=\"vertical-align: bottom; width: 96px;\">Year<\/th>\n<th style=\"vertical-align: bottom;\">% Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">$ Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median Price Of Homes Viewed on Redfin.com<\/th>\n<\/tr>\n<tr>\n<th>2014<\/th>\n<td>13%<\/td>\n<td>$40,100<\/td>\n<td>$319,900<\/td>\n<td>$360,000<\/td>\n<\/tr>\n<tr>\n<th>2015<\/th>\n<td>11%<\/td>\n<td>$39,000<\/td>\n<td>$340,000<\/td>\n<td>$379,000<\/td>\n<\/tr>\n<tr>\n<th>2016 (so far)<\/th>\n<td>3%<\/td>\n<td>$10,005<\/td>\n<td>$339,995<\/td>\n<td>$350,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 style=\"margin-top: 30px; margin-bottom: 0px; padding-top: 0px;\"><a href=\"https:\/\/redfin.com\/city\/17151\">San Francisco<\/a><\/h3>\n<table style=\"margin-top: 0px; font-size: 0.8em;\">\n<tbody>\n<tr>\n<th style=\"vertical-align: bottom; width: 96px;\">Year<\/th>\n<th style=\"vertical-align: bottom;\">% Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">$ Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median Price Of Homes Viewed on Redfin.com<\/th>\n<\/tr>\n<tr>\n<th>2014<\/th>\n<td>11%<\/td>\n<td>$99,751<\/td>\n<td>$899,249<\/td>\n<td>$999,000<\/td>\n<\/tr>\n<tr>\n<th>2015<\/th>\n<td>5%<\/td>\n<td>$51,000<\/td>\n<td>$999,000<\/td>\n<td>$1,050,000<\/td>\n<\/tr>\n<tr>\n<th>2016 (so far)<\/th>\n<td>0%<\/td>\n<td>-$3,000<\/td>\n<td>$998,000<\/td>\n<td>$995,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 style=\"margin-top: 30px; margin-bottom: 0px; padding-top: 0px;\"><a href=\"https:\/\/redfin.com\/city\/12839\">Washington, DC<\/a><\/h3>\n<table style=\"margin-top: 0px; font-size: 0.8em;\">\n<tbody>\n<tr>\n<th style=\"vertical-align: bottom; width: 96px;\">Year<\/th>\n<th style=\"vertical-align: bottom;\">% Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">$ Difference, Median View Price vs. Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median List Price<\/th>\n<th style=\"vertical-align: bottom;\">Median Price Of Homes Viewed on Redfin.com<\/th>\n<\/tr>\n<tr>\n<th>2014<\/th>\n<td>16%<\/td>\n<td>$77,100<\/td>\n<td>$489,900<\/td>\n<td>$567,000<\/td>\n<\/tr>\n<tr>\n<th>2015<\/th>\n<td>17%<\/td>\n<td>$85,100<\/td>\n<td>$499,900<\/td>\n<td>$585,000<\/td>\n<\/tr>\n<tr>\n<th>2016 (so far)<\/th>\n<td>18%<\/td>\n<td>$91,650<\/td>\n<td>$498,250<\/td>\n<td>$589,900<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Chicago and Philadelphia are following a different, more steady trend. In these cities, home prices have been rising more slowly. The price gap between listings and online views has remained steady. The Washington, D.C., market has been hot, but it tends to be relatively stable due to the constant flow of people in and out of the city for jobs. In D.C. the price to views gap has also been steady.<br \/>\n<span style=\"font-weight: 400;\">What does this mean for the housing market? Some might be tempted to link it to possible bubbliness in the markets where view and list prices have converged. Afterall, Seattle buyers recently cited affordability as their <\/span><a href=\"https:\/\/redfin.com\/blog\/2015\/11\/survey-says-a-denser-less-economically-diverse-seattle-in-2025.html\"><span style=\"font-weight: 400;\">top concern<\/span><\/a><span style=\"font-weight: 400;\">. But we aren\u2019t sure that there\u2019s that strong of a tie. We do think that sellers this year can take a token of advice from homebuyer behavior, though. Especially as list prices and view prices converge, it\u2019s as important as ever to <\/span><a href=\"https:\/\/redfin.com\/blog\/2010\/08\/you-only-get-one-chance-to-make-a-first-impression.html\"><span style=\"font-weight: 400;\">price your home right from the start<\/span><\/a><span style=\"font-weight: 400;\">. Overpricing won\u2019t get you the attention you might have gotten a couple years ago. <\/span><br \/>\n<b>Method<\/b><br \/>\n<span style=\"font-weight: 400;\">Data came from Redfin. Median prices are aggregated to the city level. List prices were included for a city and year if a home was listed any time during a calendar year in that city. View-price medians were calculated by expanding each listing by its view count. If a home was viewed eight times, we put eight copies of that home&#8217;s price in our array of view prices. We did this for each listing. Then we took the median, grouped by year and city.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re shopping for a home, chances are you\u2019re looking at homes that are more expensive than one you would actually buy. But that&#8217;s not what&#8217;s interesting about our latest research.<\/p>\n","protected":false},"author":13194,"featured_media":45409,"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-45232","post","type-post","status-publish","format-standard","has-post-thumbnail","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 v27.7) - 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