Redfin reports that U.S. home-sale prices rose 6.7% annually in January to a median price of $306,400. Prices were also up 0.7% from December 2019.
The metro areas that experienced the largest jumps in price points during January included the most affordable enclaves. Specifically, out of the 20 metro areas that experienced the biggest year-over-year price spikes, 18 of these boasted home prices that fell below the national average. Such metro areas included Memphis, Tennessee, where the average home price was $182,900, reflecting a spike of 17.1%, as well as Dayton, Ohio, which averaged a price of $132,000 that reflected a spike of 14.8%, and Rochester, New York, which saw an average home price of $148,500, reflecting a rise in price of 13.3%.
However, with the boom in home prices across the nation also came a blow to the market, as low inventory in January began causing buyers headaches.
Redfin revealed the number of available homes for the month fell 11.4% year-over-year—the biggest decline since March 2013 and the sixth straight month of falling supply.
Redfin agent Robert Iles, who works in the San Fernando Valley, spoke of the predicament, specifically referring to those homebuyers across the nation that are feeling the pinch: “Every home is getting multiple offers, often going for substantially above the asking price. One offer I recently submitted for a client faced competition from 23 other offers, and that was when the seller’s counteroffer included the term requiring our offer to be no less than $100,000 above the list price.”
Seattle-based Redfin agent Pauline Corbett also provided some insight into the conundrum facing would-be purchasers: “Buyers are getting pretty upset about the lack of inventory. There’s a growing sense of desperation as bidding wars stretch out their home searches.”
Despite the continued growth in home prices, CoreLogic noted that many cities have seen values fall over the past year and some will see further declines in 2020.
CoreLogic’s 2019 Home Price Index found more than 70 metros experienced an annual price decline, including San Jose, California.
The report also revealed that Texas, Arizona, Nevada, Alabama, South Carolina, and Florida the states at most risk for seeing prices fall over the next year.