The median home price of U.S. homes in June increased 5.7 percent to $312,700, according to a report by the real estate brokerage Redfin.
However, that nearly 6 percent increase in median home price is the lowest price growth since December 2016, the report found. Additionally, Redfin said the number of homes for sale in June declined 6 percent year-over-year, continuing the easing of year-over-year inventory declines since January.
“The affordability crisis may have reached a breaking point in Portland, San Jose and Seattle,” Redfin CEO Glenn Kelman said in a release announcing June’s results. “After 75 straight months of price increases in these markets that far outpaced wage growth, homebuyers are now becoming selective about which homes to buy, and at what price.
“The homes that did sell in June still sold quickly, but buyers were significantly more likely to reject homes that were less desirable or aggressively priced by the seller,” Kelman added. “The percentage of listings in these markets that sold within two weeks declined in June from 61 percent to 52 percent, and the fraction of listings that dropped their price increased from 31 percent to 33 percent.”
According to the report, homes sales fell 3.3 percent in June compared with June 2017. Homes also sold at their fastest pace on record, a median 34 days in June, unchanged from May and three days faster than last year, Redfin found.
The number of homes for sale in June increased by double digits in Portland, Ore. (31.6 percent); San Jose, Calif. (11.9 percent) and in Seattle (24.2 percent), the report found.
Other report highlights were:
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San Jose had the nation’s highest price growth, rising 22.4 percent since last year to $1.225 million. Las Vegas had the second-highest growth at 12.8 percent year-over-year, followed by Oakland, Calif. (11.9 percent); Cincinnati (11.4 percent) and Seattle (11.4 percent).
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Camden, N.J., had the highest year-over-year sales growth (52.4 percent) in June, followed by Pittsburgh (10.4 percent) and Long Island, N.Y. (10 percent).
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Oxnard, Calif., had the largest decline in sales (25.6 percent) in June; followed by San Jose, Calif. (16.3 percent) and West Palm Beach, Fla. (15.1 percent).
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Baton Rouge, La., had the highest year-over-year increase in the number of homes for sale (51.1 percent), followed by Portland (31.6 percent) and Seattle (24.2 percent).
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Rochester, N.Y., had the largest year-over-year decrease in inventory (33.3 percent); followed Indianapolis (30.3 percent); Buffalo, N.Y. (30.0 percent) and Milwaukee (24.2 percent).