{"id":67843,"date":"2020-02-13T04:55:49","date_gmt":"2020-02-13T12:55:49","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=67843"},"modified":"2020-10-06T12:59:36","modified_gmt":"2020-10-06T19:59:36","slug":"housing-market-news-january-2020","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/housing-market-news-january-2020\/","title":{"rendered":"Home Prices Rose 7% in January, Housing Supply Fell 11%"},"content":{"rendered":"

Imbalance between demand from homebuyers and supply of homes for sale is heating up many markets across the U.S.<\/h2>\n

U.S. home-sale prices<\/a> increased 6.7% year over year in January to a median of $306,400 across the 217 metros Redfin tracks. Home prices were also up 0.7% month over month on a seasonally-adjusted basis.
\nThe most affordable metro areas continued to experience the biggest gains in home prices in January. Among the 20 metro areas with the largest year-over-year price increases, 18 had prices below the national median, led in January by Memphis<\/a> (median price $182,900, up 17.1%), Dayton, OH<\/a> ($132,000, +14.8%) and Rochester, NY<\/a> ($148,500, +13.3%).
\nThat said, low inventory is causing a crunch in many markets across the country, even the expensive coastal cities.
\n\u201cEvery home is getting multiple offers, often going for substantially above the asking price,\u201d said San Fernando Valley Redfin agent Robert Iles<\/a>. \u201cOne offer I recently submitted for a client faced competition from 23 other offers, and that was when the seller\u2019s counteroffer included the term requiring our offer to be no less than $100,000 above the list price.\u201d
\n\u201cBuyers are getting pretty upset about the lack of inventory,\u201d said Seattle<\/a> Redfin agent Pauline Corbett<\/a>. \u201cThere\u2019s a growing sense of desperation as bidding wars stretch out their home searches.\u201d
\nOf the 85 largest metro areas Redfin tracks, only three saw a year-over-year decline in the median sale price: San Jose<\/a> (-4.3%), Baton Rouge<\/a> (-4.1%) and Greenville, SC<\/a> (-1.4%).
\n\"Year-Over-Year<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
Market Summary<\/th>\nJanuary 2020<\/th>\nMonth-Over-Month<\/th>\nYear-Over-Year<\/th>\n<\/tr>\n<\/thead>\n
Median sale price<\/td>\n$306,400<\/td>\n-1.7%<\/td>\n6.7%<\/td>\n<\/tr>\n
Homes sold, seasonally-adjusted<\/td>\n277,500<\/td>\n-1.1%<\/td>\n6.7%<\/td>\n<\/tr>\n
New listings, seasonally-adjusted<\/td>\n311,400<\/td>\n-0.4%<\/td>\n-4.5%<\/td>\n<\/tr>\n
Active listings during the month, seasonally-adjusted<\/td>\n1,061,700<\/td>\n-1.6%<\/td>\n-11.4%<\/td>\n<\/tr>\n
Median days on market<\/td>\n56<\/td>\n6<\/td>\n-2<\/td>\n<\/tr>\n
Months of supply<\/td>\n3.5<\/td>\n1<\/td>\n-1<\/td>\n<\/tr>\n
Sold above list<\/td>\n18.7%<\/td>\n-1.0 pts\u2020<\/sup><\/td>\n1.0 pts\u2020<\/sup><\/td>\n<\/tr>\n
Median Off-Market Redfin Estimate<\/td>\n$297,100<\/td>\n4.7%<\/td>\n3.0%<\/td>\n<\/tr>\n
Average Sale-to-list<\/td>\n97.7%<\/td>\n-0.2 pts\u2020<\/sup><\/td>\n0.3 pts\u2020<\/sup><\/td>\n<\/tr>\n<\/table>\n

\u2020 – \u201cpts\u201d = percentage point change<\/span>
\nNationwide, home sales increased 6.7% year over year in January, the sixth consecutive month of increases, but were down 1.1% from December on a seasonally-adjusted basis.
\n\u201cTypically, we don\u2019t see this many buyers in January, but with mortgage rates at a 3-year low, there are plenty of early-birds hoping to secure a home and lock in an affordable mortgage payment,\u201d said Redfin chief economist Daryl Fairweather<\/a>. \u201cHome sellers, on the other hand, see that the market is clearly heating up and have no reason to rush to list their homes or to make price cuts in order to secure a sale. Back in December, it wasn\u2019t clear if demand would pick up in the new year, so some sellers were willing to accept lower prices, which borrowed some demand from January and resulted in the slight dip in sales we\u2019re seeing now.\u201d
\nThe markets with the biggest increases in home sales from a year ago were North Port, FL<\/a> (29.9%), Las Vegas<\/a> (23.8%) and Anaheim, CA<\/a> (23.2%).
\n\"Home
\nThis month we\u2019re introducing a new measure of housing supply called \u201cactive listings,\u201d which is a count of all homes that were for sale at any time during the month. This is opposed to \u201cinventory\u201d which is a count of only the homes for sale on the last day of the month.
\nThe active listings of homes for sale during January fell 11.4% year over year, the biggest decline since March 2013 and the sixth straight month of declines. There were fewer homes for sale last month than any time since January 2013. None of the 85 largest metros tracked by Redfin posted a year-over-year increase in the count of seasonally-adjusted active listings of homes for sale.
\nCompared to a year ago, the biggest declines in active housing supply in January were in Salt Lake City<\/a> (-49.5%), Allentown, PA<\/a> (-33.1%) and Kansas City, MO<\/a> (-28.9%).
\n\"Active
\nThe number of new listings also fell in January, down 4.5% from a year earlier.
\n\"Change
\nSeasonally-adjusted new listings in December fell the most from a year earlier in Salt Lake City<\/a> (-39.8%), followed by Allentown, PA<\/a> (-30.8%) and St. Louis, MO<\/a> (-27.8%).
\nHomes sold in January spent two fewer days on market compared to the prior year. In January, the typical home went under contract in 56 days, compared to 58 days in January 2019.
\nThe share of homes that sold above list price increased 1.1 percentage point year over year, coming in at 18.7% in January compared to 17.6% a year earlier.
\n\"Homes
\n\"Share<\/p>\n

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

Competition<\/strong><\/p>\n