In October home sale prices climbed 4.5%, however the percentage of listings that had a price drop of more than 1% reached an 8-year high, according to new data from Redfin.
This October, home sale prices reached a median of $297,200, increasing 2.4% from the previous month, Redfin explained.
Redfin also reported that 32 of the 71 largest metro areas saw home price increase from September, attributing this growth to home sales shifting to more expensive areas, rather than individual homes increasing in value.
“Some homebuyers are adjusting their price range down, and others are backing out of home-buying entirely–deciding that renting is a better deal."
“Sellers are now realizing buyer demand isn’t what it used to be and are dropping their prices.
Notably, the number of homes for sale increased 1.3% from 2017, reaching the highest level of inventory growth since September 2015.
The U.S. Census Bureau announced that residential construction spending was at a seasonally adjusted annual rate of $556.4 billion in September, 0.6% above the revised August estimate of $553 billion.
Fairweather said that for the remainder of 2018, Redfin will examine how the California wildfires impact national housing market trends.
“The fact is that rising mortgage rates and high home prices have a bigger long-term effect on the local housing market than the fires’ destruction.” As of today, the most recent California wildfires have claimed the lives of 63 people and destroyed more than 135,000 acres.
You can read more about the devastation here.