In an attempt to track housing markets that are gaining momentum, Redfin ranked the top 25 metro areas with populations of at least 500,000 people according to three indicators of a competitive home seller's market. The report is based on data for the four weeks ending October 14, compared with the same period a year earlier.
The key highlights of the report are the decline in the number of homes for sale, an upward trend in homes going under contract within two weeks of their market debut, and an increase in the share of homes selling above the list price. It is worth noting that expensive and popular markets like Seattle and San Jose have homes sitting on the market for a longer period of time compared to last year. Bidding wars have flattened and heat is slowly moving away from the much-touted coastal areas.
According to the report, smaller and affordable inland metros are gaining ground as homes in these areas are not only less-expensive than hot coastal markets but are also priced below the national median rate of about $300,000. Another defining trait of these areas is its population of under two million, with Atlanta and Philadelphia being the exceptions with a higher count. The report found that Atlanta is also a top migration destination, moving up from No.5 among long-distance Redfin.com user searches in the third quarter of 2017 to No.2 in the third quarter this year.
“Competition in Wilmington has become fierce and often buyers have to offer over asking and compete against three to six other offers,” said local Redfin agent Claryssa McEnany. “I’m working with several buyers moving to the area from New Jersey who have expressed that they want to escape the higher property taxes that they can no longer fully deduct.”
Numerous homes in traditionally small inland markets such as Atlanta, Akron, Ohio, and Rochester, New York are going under contract within days and at an above-list price, compared to last year. In sharp contrast, markets like Seattle, San Jose, and Portland, where inventory has been increasing in double digits, the shares of homes going under contract has experienced a serious downward trend, the report revealed.