Redfin: Home Prices Continued to Climb in December While Inventory Hit a Three-Year Low

One in three homes sold in December was under contract within two
weeks — the largest portion on record since 2010

SEATTLE–(BUSINESS WIRE)–U.S. home prices rose 4.7 percent in December as inventory declined 12.7
percent, according to Redfin (www.redfin.com),
the next-generation real estate brokerage. Home sales were flat, growing
just 0.5 percent from December 2015.

Despite lackluster home sales volume, the extreme shortage of homes on
the market made for the fastest December on record since Redfin began
keeping track in 2010. Last month, the typical home went under contract
in 54 days — five days faster than a year earlier.

Among homes sold in December, nearly one-third (32.7%) went under
contract within two weeks, the largest reduction in inventory in any
single month Redfin has on record.

“We’ve never before seen homes turn over so quickly at a national
level,” said Redfin Chief Economist Nela Richardson. “This tells us that
buyers are not deterred by low inventory, election uncertainty and
slightly higher mortgage rates. If anything, these headwinds are
motivating them to act sooner rather than later.”

Regional Highlights from December:

  • Seattle, WA, was the fastest market, with half of all homes pending
    sale in just 19 days, down from 24 days a year earlier. Oakland, CA,
    and Denver, CO, were the next fastest markets, both posting a median
    of 22 days on market, followed by Grand Rapids, MI (23), and Boston,
    MA (26).
  • Seattle also had the nation’s highest price growth, rising 14.8% since
    last December to $459,975.
  • Six metros saw price declines in December. Baton Rouge, LA, saw its
    home prices decline the most since last December, falling 7.7 percent
    to $175,370.
  • 13 out of 90 metros saw sales increase by double digits from last
    December. Poughkeepsie, NY, led the nation in year-over-year sales
    growth, up 57.9%, followed by Madison, WI, up 32.0%. Detroit, MI,
    rounded out the top three with sales up 30.8% from a year earlier.
  • Detroit, MI, had the largest decrease in overall inventory, falling
    31.2% since December 2015. Rochester, NH (-30.7%), Portsmouth, NH
    (-29.4%), and Rochester, NY (-28.7%), also saw far fewer homes
    available on the market than in late 2015.

To read the full report, complete with data and charts, please visit the
following link: https://www.redfin.com/blog/2017/01/housing-market-tracker-december-2016.html.

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About Redfin Corporation

Redfin (www.redfin.com)
is the next-generation real estate brokerage, combining its own
full-service agents with modern technology to redefine real estate in
the consumer’s favor. Founded by software engineers, Redfin has the
country’s #1 brokerage website and offers a host of online tools to
consumers, including the Redfin
Estimate
, the highly accurate automated home-value estimate.
Homebuyers and sellers enjoy a full-service, technology-powered
experience from Redfin real estate agents, while saving thousands in
commissions. Redfin serves more than 80 major metro areas across the
U.S. The company has closed more than $31 billion in home sales to date,
and saved customers more than $335 million in fees, and counting.

For more information or to contact a local Redfin real estate agent,
visit www.redfin.com.
To learn about housing market trends and download data, visit the Redfin
Data Center
.

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Contacts

Redfin Journalist Services:
Jeffery Marino, 206-588-6863
press@redfin.com