Thursday, July 12, 2012

Redfin: Denver among cities with strongest gains in home prices

According to Redfin, which released new June data today on home prices and sales inventory for  19 metropolitan areas, Denver metro experienced a 9.3 percent annual change in the median price per square foot. The median price per square foot was $149 in the Denver area during June. The area with the largest price per square foot was Sane Jose, CA where the price was $366.

Denver's increase was the largest of all areas surveyed except Phoenix, which showed a 28.7 percent annual increase.

Denver also showed one of the largest declines in the number of houses for sales when compared year over year. Denver's inventory was down 40 percent during June, dropping to 7,211 homes.

Several areas in California reported larger declines in inventory, but Denver reported the 8th's largest decline of all 19 metros studied.

Release from Redfin:

SEATTLE, July 12, 2012 /PRNewswire/ -- Technology-powered real estate broker Redfin today released its Real-Time Home Price Tracker for June 2012, showing an annual price gain of 3.0% and a monthly gain of 2.6% across 19 major U.S. markets. Inventory levels declined 25.3% compared to June 2011 and fell 2.4% from May 2012. Sales volumes rose 7.4% from the same time last year, but fell 1.1% from the previous month.

It is also the only report of its kind to combine real estate brokerage listing data with public record data, ensuring that its information is accurate, up-to-date and accounts for homes not sold by a real estate agent.

The June 2012 Real-Time Home Price Tracker is Redfin's monthly analysis of home prices, sales volumes and inventory levels across the 19 major markets Redfin serves nationwide. Together with Redfin's Real-Time Report series, which found both an increase in home-buyer demand and a new majority of buyers who expect prices to rise this year, today's pricing report describes a strengthening market.

"Prices in June rose year over year for the second straight month, but the true test lies ahead," said Redfin CEO Glenn Kelman. "For the first time in five years, we're seeing sellers enter the market to take advantage of rising demand, not just out of sheer necessity. We thus expect listing prices to increase, even as employment remains weak and Europe's debt crisis continues. In competitive markets like the San Francisco Bay Area, buyers will likely rise to the bait. Elsewhere the market may falter."

Prices Up 3.0% Year Over Year; Phoenix and Denver Had Strongest Gains
Across the 19 markets Redfin serves, 16 showed annual price increases. Prices increased the most in Phoenix at 28.7% and in Denver at 9.3%. In Long Island, NY prices fell the most, at 4.4%.

Inventory Down 25.3% Year Over Year Nationwide, Down 50% or More in California's Major Cities
The primary reason prices are increasing is falling inventory. In 16 of the 19 markets measured, the number of houses for sale declined since June 2011; in 15 of 19, the decline was by 20% or more.

One in Four Listings Is Under Contract in Less than 14 Days
Those home-owners who do decide to list their home often sell very quickly, getting a buyer under contract within 14 days of the listing's debut. This happened to 28.5% of all single-family houses that debuted in the first three weeks of June. The San Jose market saw more than half of its homes sell that quickly.

Sales Volume Up 4.3% Over Last Year, But Down 1.1% Since May
Sales may happen quickly, but the number of closings has grown only modestly since last year. Lack of inventory has also limited sales volume. Closings of single-family homes are up 4.3% since last year but down since May 1.1%. Some of the biggest recent drops in sales volume are in the places where inventory is in shortest supply: Sacramento, San Jose, Southern California's Inland Empire and Denver.

The complete Real-Time Home Price Tracker is available at: