U.S. Home Prices up 5.4% in October

Low mortgage rates prop up homebuyer demand as inventory declines

U.S. home-sale prices increased 5.4% year over year in October to a median of $313,200 across the 217 metros Redfin tracks. The increase was the largest since July 2018, although current strength may be overstated given the weakening housing market a year ago. Prices also rose 1.4% between September and October, a time of year when they usually flatten. This is the largest month-over-month increase in an October we’ve seen since at least 2012.

“Low mortgage rates are propping up homebuyer demand and juicing prices, said Redfin chief economist Daryl Fairweather. “However, home sales have been slow to grow since there are so few homes for sale and not many new listings hitting the market, especially affordable ones. The market is split: It’s a seller’s market for moderately priced homes, but a buyer’s market for pricier homes.”

Home prices going up is not good news for investors who are acquiring. For landlords, we want to see demand for rentals go up, not so much in Austin :sob:

Time to deploy some money in BARE? @jksram was first to call bottom.

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Sacramento MSA and Reno are better bets. Also Phoenix and Vegas. Don’t discount the boomer migration to cheaper areas with lower taxes.

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Here’s more on the inventory decline. Seattle leads the way with 28% decline.

Also, millennials are migrating to smaller cities with lower cost of living, so they can buy a home.

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Of late Redfin is showing an interesting data point on home listing pages. I noticed it while looking at a $2M home listing in San Jose. It shows how many others are searching for homes in that price range in that neighborhood. Guess how many in West San Jose for $2M. It was about 10 thousand searches. There are not even 10 homes for sale. Is this an indication of pending demand?


Shadow demand :grinning:

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10k people searching for $2M homes? Oh. My. God.

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Dual tech households (non - FAANG) will pull back easily $400k a year. $2M is affordable

By the way, if you want to see that search number you won’t be able to find it on every listing (at least not yet). My friend signed up as a Redfin user and registered his home with his account. Then when he was showing me his home from his logged in account, it showed this search number.