Given the heated political climate of this year’s election and the inactivity that typically follows the Thanksgiving holiday, one might expect the real estate market to have taken it easy this November. On the contrary, prices and home sales both posted their largest annual gains so far in 2016 and inventory fell farther than it has all year, revealing an exceptionally lively fall market.
The median sale price rose 7.7 percent to $271,400, marking the highest annual price growth in 14 months. The number of homes sold climbed 20.1 percent compared to the same period last year, the largest annual increase since July 2015. More buyers chased fewer homes as inventory fell 9.7 percent from last year, marking the 14th month of annual declines and the biggest drop in supply since July 2014.
“Last year we saw a temporary slump in November sales as new mortgage industry regulations went into effect and delayed some closings,” said Redfin chief economist Nela Richardson. “Now, those regulatory hurdles have largely been resolved but the market is by no means back to normal. We’ve seen a pickup in the number of Redfin customers going on tours and making offers the last two months as consistently good economic news has bolstered consumer confidence. The Federal Reserve’s decision to raise rates is unlikely to significantly dampen homebuyer enthusiasm as we enter 2017. We’re still expecting another year of rising home prices and modestly growing home sales.”
With fewer homes to choose from and more homes being sold, time was of the essence for homebuyers this fall. The typical home sold within 50 days, which is six days faster than last year, marking the fastest November since Redfin started tracking this data in 2009. One in four homes that sold in November was off the market within two weeks and one in five sold for more than the asking price.
Denver, Colorado was one of the fastest markets this November. The typical home sold in just 19 days — 16 days faster than the same time last year, and 69 percent of homes sold within two weeks. Home sales and prices both grew by double digits and inventory declined 25 percent.
“All you have to do is glance at the license plates on the cars parked downtown to understand how many transplants have flocked here,” said Redfin Denver real estate agent Michael Turner. “This influx of new buyers has kept demand high and led to steadily rising prices and an incredibly fast market. The inventory situation has yet to improve as sellers linger over the decision to list, worrying about being able to find a suitable replacement home and reluctant to give up their extremely low mortgage rates.”
Other November Highlights
Competition
Prices
Sales
Inventory
Below are market-by-market breakdowns for prices, sales, inventory and new listings for markets with populations of 1.5 million or more. For downloadable data on all of the markets Redfin tracks, visit the Redfin Data Center.
