{"id":63989,"date":"2018-09-24T04:50:00","date_gmt":"2018-09-24T11:50:00","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=63851"},"modified":"2020-10-06T12:59:45","modified_gmt":"2020-10-06T19:59:45","slug":"market-tracker-august-2018","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/market-tracker-august-2018\/","title":{"rendered":"Home Prices Up 4.7% in August, Lowest Price Growth in Four Years"},"content":{"rendered":"
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August Home Sales Fell 2.4%, as Inventory Declined Just 3.4% from Last Year<\/span><\/i><\/h3>\n

U.S. home-sale prices increased 4.7 percent in August to <\/span>a median of $300,900,<\/span> compared to a year ago. The price growth rate has been dropping for six consecutive months and has not been this low since August 2014. Homes sales fell 2.4 percent in August compared to a year prior. <\/span>
\nInventory declines <\/span>continued to moderate<\/span><\/a> in August. The number of homes for sale was down 3.4 percent year over year, the smallest decline in 29 months. The number of homes that were newly put on the market in August grew 3.3 percent year over year, helping to ease the supply shortage. The typical home that sold in August went under contract in a median of 37 days, three days faster than August 2017. <\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Market Summary<\/th>\nAugust 2018<\/th>\nMonth-Over-Month<\/th>\nYear-Over-Year<\/th>\n<\/tr>\n<\/thead>\n
Median sale price<\/td>\n$300,900<\/td>\n-0.6%<\/td>\n4.7%<\/td>\n<\/tr>\n
Homes sold<\/td>\n266,400<\/td>\n-2.1%<\/td>\n-2.4%<\/td>\n<\/tr>\n
New listings<\/td>\n302,700<\/td>\n-1.1%<\/td>\n3.3%<\/td>\n<\/tr>\n
All Homes for sale<\/td>\n723,200<\/td>\n-1.0%<\/td>\n-3.4%<\/td>\n<\/tr>\n
Median days on market<\/td>\n37<\/td>\n2<\/td>\n-3<\/td>\n<\/tr>\n
Months of supply<\/td>\n2.7<\/td>\n0<\/td>\n0<\/td>\n<\/tr>\n
Sold above list<\/td>\n23.6%<\/td>\n-2.6%<\/td>\n-1.3%<\/td>\n<\/tr>\n
Median Off-Market Redfin Estimate<\/td>\n$293,700<\/td>\n0.2%<\/td>\n8.0%<\/td>\n<\/tr>\n
Average Sale-to-list<\/td>\n98.4%<\/td>\n0.0%<\/td>\n-0.1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

While homes are still selling at a rapid clip, other data points to waning competition. The share of homes that sold above asking price declined from 25 percent last August to 23.6 percent this August. <\/span>
\n\u201cWhile sale prices moderate, new listing prices keep accelerating,\u201d said Redfin senior economist Taylor Marr. \u201cThis mismatch between seller expectations and reality is fueling an increase in price drops in metros across the country.\u201d \u00a0<\/span>
\nNearly 30 percent of homes on the market in August had a price drop, the largest share on record since Redfin began tracking this metric in 2009, and a 3.4 percentage-point increase over last August. It\u2019s worth noting that the share of homes with price drops typically peaks each year in July or August. <\/span><\/p>\n

Metro Trends<\/b><\/h3>\n

Redfin has been closely tracking a market shift in <\/span>San Jose, California<\/span><\/a>, <\/span>Seattle<\/span><\/a>, and <\/span>Portland, Oregon<\/span><\/a>, over the past three months. The trends of increasing inventory and declining sales we reported in June and July intensified in August. <\/span>
\nIn San Jose and Seattle, the supply of homes was up nearly 50 percent year over year. In Portland, inventory increased 25 percent. The increase in inventory is the combination of more people putting their homes on the market as <\/span>fewer buyers are stepping up to purchase<\/span><\/a>. San Jose, Seattle and Portland saw respective sales declines of 16 percent, 19 percent and 6 percent.<\/span><\/p>\n

\"Seattle<\/figure>\n

These markets continue to slow, with homes staying on the market longer than last year. In Portland, homes were on the market for a median of 21 days before finding a buyer, 10 days longer than last August. In San Jose, the median of 20 days on market is six days longer than a year prior. At 12 median days on market, Seattle was the second fastest market in the country, but homes still took four days longer to sell this August, compared to August of last year. <\/span>
\nIn Seattle, home prices were up 6 percent year over year, the lowest price growth in nearly three years. In San Jose and Portland, home prices rose 22 percent and 7 percent year over year respectively.<\/span>
\nRebecca Walter, a <\/span>Redfin agent in Portland<\/span><\/a>, says the market shift has been dramatic. She is seeing far fewer multiple offer situations lately compared to last year, even in popular neighborhoods. Walter says in this market, pricing right is more important than ever. <\/span>
\n\u201cI tell sellers that the worst thing you can do is overprice your home. If you have to drop the price, you can\u2019t recreate the same <\/span>excitement and fervor as when your home first hits the market<\/span><\/a>. Pricing too high can ultimately result in getting less than market value, below what you likely could have gotten if you priced at market value from the start.\u201d \u00a0<\/span>
\nWalter says rapid price appreciation has left many would-be Portland buyers priced out of the market and some are <\/span>opting to move somewhere more affordable <\/span><\/a>. She says homeowners who are thinking about selling should consider doing so sooner rather than later. <\/span>
\n\u201c<\/span>I don\u2019t have a crystal ball, but I wouldn’t count on your home appreciating and being worth more in the spring than it is now. The Fed has indicated they will make one more rate hike in December, which would impact buyers\u2019 purchasing power. We have this window before the market slows for the holidays, so the sooner the better if you\u2019re planning to sell.\u201d <\/span><\/p>\n

Other August Highlights<\/strong><\/h3>\n

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