Posts Tagged ‘ Redfin ’

Bidding Wars Resume in Major Markets in October

Bidding Wars Resume in Major Markets in October


Despite a softening market, competition among buyers remained fairly fierce in October, Redfin reported in its Real-Time Bidding Wars release for the month.

Last month, 55.9 percent of offers written by the Seattle-based brokerage’s agents faced competition from other buyers, a decline from 58.3 percent in September. Bidding wars have been on a downward slope since peaking at 79 percent in February.

October was also the third consecutive month to see a drop in competition compared to the same month last year, Redfin said.

Even with the decline, though, competition last month was higher than expected, given the effects of the government shutdown on consumer confidence.

“While many Americans paused their home-buying and selling plans during the shutdown, overall demand in October was more robust than expected, with home tours and offers rebounding once the government reopened,” said Redfin analyst Rachel Musiker. “This unexpectedly strong demand paired with dwindling inventory likely kept competition from falling even further in October.”

Out of the 22 markets reporting, Boston saw the biggest drop in competition, with 61.3 percent of offers facing bidding wars—down from 70.1 percent in September. San Diego, meanwhile, experienced the biggest increase in bidding wars, with 63.0 percent of offers competing against multiple bids compared to 56.1 percent the month prior.

For the most competitive areas, interested buyers still have to adopt aggressive tactics, including offering all cash. Mia Simon, a Redfin agent operating in Silicon Valley, tells a story of a bidder vying for a home priced just above $1.4 million:

“There were only three other offers, but they were all above $1.8 million. Although my client’s offer was not the highest overall, it was the highest of the all-cash offers,” Simon said.

“Today’s Silicon Valley home buyers realize that they long missed out on the bottom of the market, but many believe that home prices will rise even more in 2014, so they will do whatever it takes to get a home under contract before the spring,” she added.

At the same time, the less competitive markets are seeing a shift in the buyer/seller dynamic. For example, in Washington, D.C.—where 44.0 percent of Redfin offers went against other bids in October—sellers are working harder to gain attention.

“I’ve recently received a few phone calls from agents whose listings I have shown to my clients,” said agent Philip Gvinter, who works in the nation’s capital. “They’re trying to gauge my clients’ interest in the home, and some simply ask what it will take to get my client to write an offer. It’s been more than a year and a half since I’ve received a call like that.”


Attitudes Toward Buying, Selling Shift in Q1 Among Agents

Attitudes Toward Buying, Selling Shift in Q1 Among Agents


Real estate agents are showing heightened optimism for housing as the market continues its swing toward sellers,Redfin observed in its latest Real-Time Agent Survey.

For its first-quarter report, Redfin surveyed 650 agents either employed by or partnered with the company. Respondents spanned 21 metro markets across the country.

According to brokerage’s findings, the number of agents saying now is a good time to buy plummeted from 75 percent in Q3 2012 to just 57 percent in Q1 2013. At the same time, the number of agents saying now is a bad time to buy rose slightly, though the percentage is still low—5 percent in Q1 2013 compared to 2 percent in Q3 2012.

On the other hand, 82 percent of agents believe now is a good time to sell, a spike from 54 percent in the third-quarter survey.

Contributing to that shift is the increased perception that sellers are gaining confidence in the market. According to Redfin, 98 percent of agents surveyed agreed that sellers are becoming more confident, while 83 percent agreed buyers are more confident.

Nearly one-quarter of respondents—24 percent—said sellers face “no major challenges” today.

“The third quarter’s biggest challenge for sellers, ‘unrealistic expectations,’ fell from 53 percent to just 35 percent this quarter,” Redfin analyst Tim Ellis wrote in a blog. “With home prices rising in most every market, what was unrealistic last year has become completely reasonable this year.”

Agents also expressed greater confidence as far as home prices are concerned. Ninety-seven percent of respondents believe prices will rise in the coming months (compared to 87 percent in the last survey), while the number of those predicting prices will “rise a lot” quadrupled to 44 percent. The number of agents expecting prices to either decline or stay the same fell to 3 percent, down from 12 percent in the previous survey.

On the other side of the equation, agents reported multiple challenges keeping prospective buyers away from their dream homes. “Low inventory” and “multiple offers” were the most commonly cited challenges, each one receiving mention from 96 percent of respondents. In addition, 39 percent of agents pointed to “rising prices” as a concern, more than double the percentage in the third quarter.

Perhaps most promising was the rise in optimism concerning the real estate profession itself. Seventy-four percent of agents believe the industry will grow in size in the next five years, up from 59 percent in the third quarter. The share of respondents saying the profession will downsize halved from the last survey, dropping to 6 percent.

“Agent attitudes have flipped from cautious optimism late last year to amazement at the suddenly hot market in most parts of the country … and we haven’t even arrived at the typically busy spring season yet,” Ellis wrote.

More than One-Third of Listed Homes Sold Within 2 Weeks: Redfin

More than One-Third of Listed Homes Sold Within 2 Weeks: Redfin

03/18/2013 BY: ESTHER CHO

More than one-third of homes were taken off the market in two weeks or less last month, Redfin revealed in its most recent monthly housing report.

On average, 34 percent of homes were under contract within 14 days of their debut in February, an increase from 30.3 percent in January, the online real estate broker reported.

In addition, a handful of metros, especially in California, saw an even greater share of homes get taken off the market within two weeks.

In San Jose, 63.1 percent listings were sold within two weeks, the most out of the 19 metros the report covers.

Other California metros with a much higher percentage were San Francisco (56.8 percent), Ventura (52.6 percent), Los Angeles (51.3 percent), and Inland Empire (49.8 percent).

Redfin also reported a continued year-over-year decrease in inventory, which has fallen 32 percent from February 2012. Though, inventory did inch up 1.1 percent from January 2013.

As inventory stayed low, home prices ended last month with a 13.2 percent year-over-year increase and 2.4 percent month-over-month gain.

Sales, constrained by a lack of inventory, were up just 2.3 percent from a year ago and 0.7 percent from last month, Redfin reported.

Redfin’s analysis is based on local databases used directly by real estate agents to list properties and record sales.


Redfin: New Short Sale Listings Down 54% from 2012

Redfin: New Short Sale Listings Down 54% from 2012

02/18/2013BY: ESTHER CHO Printer Friendly View

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In a blog post Friday, Redfin revealed new conventional listings have actually gone up 2 percent compared to last year, while listings for distressed properties have been reduced in half.

Redfin conducted an analysis of new property listings in the first five weeks of 2013 (January 1 to February 11) compared to the same period in 2012.

The Seattle-based brokerage found short sale listings decreased 54 percent from 2012, while REO listings are down by 46 percent. Overall, new listings declined 18 percent from 2012.

“Prices have gone up enough to stem the tide of short sales and bank-owned homes, but not enough to bring out the pent-up supply of would-be home sellers who have been sitting out the declining market,” Redfin explained.

In addition, expansions to the Home Affordable Refinance Program (HARP) have allowed more underwater borrowers to stay in their home by broadening eligibility for refinancing, according to Redfin.

Certain metros far exceeded the national average in their reduction for new distressed property listings. In San Jose, bank-owned listings fell 69.6 percent and short sale listings plummeted 81.7 percent. San Francisco has seen new REO listings dropped 69 percent and short sales listings decrease 73.8 percent. Meanwhile, Phoenix has seen new listings for REOs and short sales drop by 62.2 percent and 61.2 percent, respectively.

Though, non-distressed new listings surged 35 percent in Phoenix during the same time period.

Redfin: Recovery Swells in Unlikely Neighborhoods

Redfin: Recovery Swells in Unlikely Neighborhoods


Redfin, a Seattle-based real estate broker driven by technology, is finding some of the nation’s top emerging markets in what the broker says are unlikely places.

Redfin studied 48 emerging neighborhoods located within 16 major metro areas across the country to determine which neighborhoods showed the most promise in terms of price growth this year.

“The results surprised us,” said Glenn Kelman, CEO of Redfin. “[T]he hottest neighborhoods aren’t the well-known bastions of privilege. They’re once-gritty urban areas and far-flung suburbs with school districts on the rise.”

Kelman sees this trend as “the surest sign that the recovery is broadening.”

Eight of the top 10 neighborhoods are located in California.

The top neighborhood is Highland Park, located in Los Angeles. From December 2011 to December 2012, Highland Park has experienced a 48 percent drop in inventory along with a 72.7 percent rise in sales volume. Median prices in the neighborhood rose 31.2 percent over the year.

Other top emerging neighborhoods, according to Redfin’s study, are located in San Diego, San Francisco, Chicago, and Seattle.

The most drastic price increase from December 2011 to December 2012 took place in The Mission, a neighborhood in the San Francisco Peninsula, where the median sales price rose 79.8 percent.

Sales volume increased most in Logan Square, a Chicago neighborhood, where sales rose 93.8 percent last year.

Inventory, another factor in Redfin’s study, declined most in Livermore, located in San Francisco’s East Bay. The neighborhood now has 71.3 percent fewer homes in its inventory than it did last year.

Kelman pointed out that while many industry analysts now concur the housing market bottomed out last year, “the reality on the ground is sometimes more complicated than that.”

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