Tag Archives: Redfin

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 the brokerage's latest Real-Time Housing Market Tracker, Redfin Chief Economist Nela Richardson notes two ongoing trends indicating a shift to a more balanced market as the nation heads into fall.

Redfin released its latest market summary, which sees the combination of sales, prices, foot traffic, and inventory as positive signs heading into the fall. "After an abysmal first quarter that drove a disappointing first half, housing will be playing catch-up for the year," said Nela Richardson, Redfin's chief economist. "Though it won't be a seamless transition, we believe the housing market is positioning itself for a stronger finish in the second half of the year."

As the housing recovery downshifts from last year's pace, the latest survey of real estate agents by national brokerage Redfin finds homebuyers and sellers are having trouble getting on the same page with each other and with the new shape of the market.

Home flippers reported more gains in 2013 than in any year on record, according to national real estate brokerage Redfin. The average home flipped last year was sold for $90,200 more than it was purchased, and in 11 of the 30 markets Redfin analyzed, flippers received gains of more than $100,000 per house. Redfin considers flipping the act of purchasing and then reselling a home within 12 months.

A report published by Redfin's Research Center indicated that home inventory was up 9.1 percent in May. That number represents the highest number of new listings to come onto the market in the last four years. At the same time, the actual number of homes sold dropped 10 percent. The drop in actual sales surprised analysts, who had been predicting a flood of new home purchases once inventory was in greater supply.

In its latest Real-Time Demand Pulse, Redfin recorded a 2.1 percent month-over-month decline in customers taking home tours in April. "New listings get the attention of would-be buyers, prompting them to go on home tours," said Nela Richardson, chief economist at Redfin. "However, new listings increased just 8 percent in April, compared with 25 percent growth in March, and that slower growth had a dampening effect on home tours."

While home sales have largely struggled so far this year, there's one market segment that's actually holding up well, according to Redfin: the very highest price tier. "For the top 1 percent, the housing market is still booming," said Redfin analyst Troy Martin in a blog post. "But for the rest of the market, the recovery is running out of gas."

The mortgage meltdown and its somewhat predictable fallout—tighter regulations that ensure such a crisis cannot recur but choke lending and borrowing at the source—have led to an equally inevitable outcome: a glut in cash sales for homes. A recent report by Redfin shows that in 17 metro markets in the United States, a full third of sales this year have been all-cash deals. And that figure has been essentially flat since 2011.

In its Real-Time Price Tracker report for April, national brokerage Redfin reported a 12.4 percent monthly pickup in home sales across its 30 surveyed markets, restoring some faith in sales after an unexpected dive in March. However, compared to April 2013, last month's sales fell 7.6 percent short, with nine markets posting double-digit annual declines.

As home sellers become more confident in the housing market, many are taking on what Redfin calls a “risky pricing strategy,” according to the online real estate brokerage’s latest survey. A little more than 40 percent of home sellers plan to price their homes above market value, Redfin’s data shows. Regardless of this bolstered confidence, Redfin warns overpricing a home is not a wise strategy in today’s market.