{"id":63898,"date":"2018-08-17T04:45:22","date_gmt":"2018-08-17T11:45:22","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=63535"},"modified":"2020-10-06T12:59:45","modified_gmt":"2020-10-06T19:59:45","slug":"market-tracker-july-2018","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/market-tracker-july-2018\/","title":{"rendered":"Home Prices Up 5.3% in July, Continuing a Trend of Moderating Growth"},"content":{"rendered":"

Sales Rebounded, up 4.1%, as Inventory Declined Just 5.4% from Last Year<\/span><\/i><\/h4>\n

San Jose, Seattle and Portland Posted Double-Digit Inventory Increases for the Second Month in a Row<\/span><\/i><\/h4>\n

*This report was updated on August 30.<\/em><\/h4>\n

U.S. home-sale prices increased 5.3 percent in July to <\/span>a median of $307,400,<\/span> compared to a year ago. The price growth rate has been dropping for five consecutive months and has not been this low since September 2016. Homes sales increased 4.1 percent in July compared to July 2017 as inventory declines <\/span>continued to moderate<\/span><\/a>. <\/span>
\nThe number of homes for sale in July was down 5.4 percent year over year. This marks the third month of supply declines around 5 percent following 19 months of inventory declines of over 7 percent.<\/span>
\nHomes that sold in July went under contract in a median 35 days, three days faster than last year and one day slower than in June. While homes are still selling near a record-fast pace, there are some signs competition is waning. For the first time since March 2015, the share of homes that sold above asking price declined year over year– albeit slightly– from 26.5 in July 2017 to 26.2 percent last month. Twenty-eight percent of homes on the market in July had a price drop, the largest share on record since Redfin began tracking this metric in 2009, and a 3.2 percentage-point increase over last July. It\u2019s worth noting that the share of homes with price drops typically peaks each year in July or August.<\/span><\/p>\n

\"Median\"Inventory<\/figure>\n

Metro Trends<\/b>
\nFor <\/span>the second month in a row<\/span><\/a>, inventory increased year over year by double digits in <\/span>San Jose, California<\/span><\/a>, (28.0%) <\/span>Seattle<\/span><\/a> (27.0%) and <\/span>Portland, Oregon,<\/span><\/a> (21.8%). These markets also experienced sales declines of 11.9 percent, 6.4 percent and 6.1 percent, respectively. In Portland, homes took a median 15 days on market (DOM) to sell, a full week longer than last July. In San Jose (16 DOM) and Seattle (9 DOM), it took one and two days longer, respectively, for homes to find a buyer this July compared to last year. <\/span>
\nHome prices continued to rise in these metros year over year, but they are rising at a slower rate. In Portland, home prices were up 4 percent year over year, the lowest price growth in 41 months. Seattle home prices increased 8 percent compared with last year, the lowest growth in 27 months. San Jose home prices grew 19.3 percent. While still the highest growth of any metro Redfin tracks, this was the lowest price growth San Jose has seen in nine months.<\/span>
\nTaylor Marr, Redfin senior economist, said, \u201cThe Bay Area, Seattle and Portland have been so competitive for so long that buyers and sellers have adjusted to those conditions and may feel uneasy about the changes we\u2019re seeing in the market. After several years of shrinking inventory and unsustainable price growth, I\u2019m encouraged by these changes as a signal that we may be returning to a healthier, more balanced market.\u201d<\/span>
\nWhile these hot coastal markets are showing signs of cooling, competition is heating up in some smaller, inland metros. In Indianapolis the typical home that sold in July found a buyer in 10 days, 25 days faster than last July. In <\/span>Atlanta<\/span><\/a> (23 DOM); <\/span>Rochester, New York<\/span><\/a> (15 DOM); <\/span>Buffalo, New York<\/span><\/a> (14 DOM); and <\/span>Knoxville, Tennessee<\/span><\/a> (55 DOM), homes sold more than two weeks faster this year compared to last year. \u00a0<\/span>
\nJake Johnson<\/span><\/a>, Redfin\u2019s market manager in Indianapolis, said a drastic year-over-year decline in inventory (-27.6%) is causing competition to escalate. \u201cWe\u2019re caught in the cycle where sellers are afraid to list because they aren\u2019t sure if they\u2019ll find a home to buy. In popular neighborhoods, homes that would have received two or three offers last year are getting eight to 10. Homes in the $250,000 to $350,000 price range are going under contract within days. Because Indianapolis hasn\u2019t traditionally been a hot market, we\u2019re educating buyers about how the market is changing and how we can craft an offer to win in a bidding war.\u201d <\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
Market Summary <\/b><\/td>\nJuly 2018<\/b><\/td>\nMonth-Over-Month<\/b><\/td>\nYear-Over-Year<\/b><\/td>\n<\/tr>\n
Median sale price<\/b><\/td>\n$307,400<\/span><\/td>\n-1.4%<\/span><\/td>\n5.3%<\/span><\/td>\n<\/tr>\n
Homes sold<\/b><\/td>\n277,100<\/span><\/td>\n-8.2%<\/span><\/td>\n4.1%<\/span><\/td>\n<\/tr>\n
New listings<\/b><\/td>\n319,000<\/span><\/td>\n-8.2%<\/span><\/td>\n2.8%<\/span><\/td>\n<\/tr>\n
All Homes for sale<\/b><\/td>\n747,200<\/span><\/td>\n-1.1%<\/span><\/td>\n-5.4%<\/span><\/td>\n<\/tr>\n
Median days on market<\/b><\/td>\n35<\/span><\/td>\n1<\/span><\/td>\n-3<\/span><\/td>\n<\/tr>\n
Months of supply<\/b><\/td>\n2.7<\/span><\/td>\n0.2<\/span><\/td>\n-0.3<\/span><\/td>\n<\/tr>\n
Sold above list<\/b><\/td>\n26.2%<\/span><\/td>\n-1.7%<\/span><\/td>\n-0.3%<\/span><\/td>\n<\/tr>\n
Median Off-Market Redfin Estimate<\/b><\/td>\n$292,800<\/span><\/td>\n0.1%<\/span><\/td>\n\u00a07.8%<\/td>\n<\/tr>\n
Average Sale-to-list<\/b><\/td>\n98.6%<\/span><\/td>\n-0.3%<\/span><\/td>\n0.0%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


\nOther July Highlights<\/b><\/h3>\n

Speed and Competition<\/b><\/p>\n