Housing market sets new low for home supply, Redfin reports

by Rincey Abraham

Belmont, North Carolina, USA - June 19, 2016: The American Dream is pictured in this iconic image of the front of a traditional, Victorian-style homes in the Eagle Park neighborhood development. Eagle Park reflects the new style of neighborhoods where homes are built on smaller lots with amenities such as parks, pools and located near small towns and large cities. An American flag hangs from the front porch in celebration to honor an upcoming holiday. Many Americans express patriotism by flying Old Glory, not only on holidays, but all year long. The architecture reflects old styles, however, the construction of the homes has used modern materials and finishes.

U.S. home prices rose in June to the highest national median sale price Redfin has recorded since it began tracking in 2010, hitting $298,000, according to Redfin’s June housing report.

However, home sales continue to be constrained by low inventory, only growing 1.9 percent compared to last year. June also saw the lowest home supply on record, falling 10.7 percent to 2.5 months supply. This is significantly below the six-month mark that represents a healthy and balanced market.

Homes sold in June were under contract in 36 days, which is one day faster than in May and a new pace for home sales. Around 26 percent of homes sold went for above the list price, which is also a Redfin record. The average sale-to-list price ratio hit a Redfin high of 95.5 percent in June.

“This market is unlike any we’ve ever seen before,” said Redfin chief economist Nela Richardson. “Month after month, new records are set for the pace at which homes are going under contract. Demand continues to swell while supply troughs. For buyers competing in this market, it’s survival of the fittest. The strongest offers that are most likely to close quickly and smoothly rise to the top of the pile.”

Market Summary June 17 Month-Over-Month Year-Over-Year
Median sale price $297,600 3.5% 7.3%
Homes sold 308,800 7.2% 1.9%
New listings 352,500 -2.7% 0.0%
All Homes for sale 786,000 1.6% -10.7%
Median days on market 36 -1 -6
Months of supply 2.5 -0.2 -0.4
Sold above list 26.60% 0.6% 2.4%
Average Sale-to-list 95.50% 0.2% 0.4%

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