Home prices surged in November by 6.8 percent from last year, the biggest increase since April, according to Redfin, the next-generation real estate brokerage. Sixteen of the 68 markets tracked by Redfin saw year-over-year price growth in the double digits.
Nationally, sales were flat, up just 0.9 percent, with low inventory largely to blame. Inventory declined 4.7 percent in November, marking the tenth consecutive month of year-over-year declines in inventory.
“Yesterday’s Fed decision to raise interest rates is not a threat to homebuyers,” said Redfin chief economist Nela Richardson. “The prospect of more months of low inventory are what put them in danger.”
New for-sale listings rose 8.4 percent, the largest year-over-year increase since April, providing some hope for a pickup in inventory over the next few months. Months of supply increased for the fourth consecutive month to 4.2, up from a low in 2.8 in June. The national housing market is still about two months shy of a balanced market between buyers and sellers, however.
Local Market Insights in November
- The median sale price in Charleston, SC climbed 11%, year over year, which local Redfin agents attribute to new job opportunities created by Boeing paired with low inventory. Several other southeastern US cities also saw double-digit price growth, including Memphis (12.3%), Fort Lauderdale (12.7%), and Richmond, VA (10.5%).
- Prices in Denver continue to soar, up 12.1% to $310,000. November was Denver’s fourteenth consecutive month of year-over-year price growth above 10%.
- The largest year-over-year increases in home sales were in Buffalo (26.7%), Hudson Valley (18.2%) and Providence, RI (14.7%).
- Eighteen markets bucked the usual seasonal slowdown, and actually sped up from October to November. In vacation destinations Miami and Fort Lauderdale, the typical home sold 10 days faster than last month and 21 days faster than last year.
To read the full report, complete with more data and charts, please check out the Redfin blog for more details.
Redfin also took an in-depth look at home prices, sales and inventory across neighborhoods for four cities: Chicago, Los Angeles, San Francisco and Washington, D.C.