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The MReport Webcast: Tuesday 9/2/2014

The balance of power in the housing market is continuing its tilt back to buyers—and that could spell a surge in home sales in the coming months. In Redfin’s latest Real-Time Housing Market Tracker, Chief Economist Nela Richardson says the ongoing slowdown in home price growth is helping to give home shoppers a leg up in the market, which she expects will help sales. For July, the brokerage recorded a slight monthly decline in the median sales price of homes sold in the major metros the company tracks, marking the first time in five months that price growth was essentially flat. Further flattening is anticipated in the fall.

The company reported a shift in pricing power away from sellers. According to Redfin’s data, the share of homes sold with price drops climbed to nearly a quarter in July as inventory expands and sellers start to compete more aggressively. At the same time, the number of homes selling above their list price fell nearly 7 percentage points over the year to just over 20 percent, indicating a greater willingness to negotiate. Given these changes and promising—albeit uneven—growth in housing inventory, Richardson anticipates housing market activity this fall to be the strongest in five years.

Title insurance premium volumes declined by 16.6 percent year-over-year for 2014's second quarter, according to recently released data from the American Land Title Association. In an analysis released Thursday, the trade group reported that the industry generated 2-point-7 billion dollars in premiums last quarter compared to 3.3 billion a year prior. The association’s CEO, Michelle Korsmo, pinned the drop on a lackluster spring homebuying season along with a substantial decline in refinance activity. Despite those setbacks, Korsmo says the title insurance industry remains in a strong financial position.

About Author: Jordan Funderburk

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