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U.S. Home Prices Hit Record High in June, Redfin Says

16-Jul-2017


Fang Block, Mansion Global

The U.S. housing market continued to accelerate in June, with both the median prices and speed of home sales hitting all-time highs, according to a Redfin report published on Thursday.

Nationwide, the median sales price rose 7.3% year-to-year to $298,000 in June, the highest price on record since the Seattle-based brokerage began tracking in 2010. Homes typically sold within 36 days of when they were listed, marking the fastest pace in seven years, according to Redfin.

The tightening of the housing market reflects the imbalance between a long-standing inventory shortage and surging demand.

“Month after month, new records are set for the pace at which homes are going under contract. Demand continues to swell while supply troughs,” Nela Richardson, chief economist at Redfin, said in the report.

Redfin’s monthly report doesn’t break out luxury data.

Other major findings:

Home sales increased 1.9% year-over-year to 308,800; 10 out of 89 metro areas saw double-digit increase in sales

Nationwide, new listings fell 2.7% from a month ago

Listings stayed on the market for an average 36 days, six days shorter than a year ago

Denver, Portland and Seattle were the fastest-moving markets, where a typical home entered into contract in just seven days

More than a quarter of homes across the country sold above asking price. The most competitive market was San Jose, California, where 73.7% of homes sold above list price, followed by 70.6% in San Francisco

Fort Lauderdale, Florida, had the nation’s highest price growth, rising 15.6% year-over-year to $260,000

 

Low Inventory Falls Short of Demand

In June, the number of homes available for sale dropped 10.7% to 786,000, with new listings at 352,500, matching the volume of last year but falling 2.7% from May. At the current rate of consumption, this translates into a 2.5-month inventory, the lowest supply on record since 2010.

Generally, six months of supply represents a market balanced between buyers and sellers, according to Redfin. Anything less favors sellers, anything more favors buyers.

Meanwhile, buyers bid competitively for limited housing stocks. More than 82,140 homes, or about 26.6% of all homes sold in June, fetched higher sales price than asking, according to Redfin.

“For buyers competing in this market, it’s survival of the fittest,” Ms. Richardson said. “The strongest offers that are most likely to close quickly and smoothly rise to the top of the pile.”


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