Sales Pace Downshifts in Hot Markets

The sales pace in the hottest housing markets in the U.S. is slowing down. Denver, San Jose, Calif., and Seattle had some of the greatest slowdowns.

In those three markets, the share of homes that sold in less than two weeks went from between 72 percent (Seattle) and 62 percent (Denver) in March and April 2018, down to between 41 percent (Denver) and 31 percent (San Jose) from mid-August to mid-September 2018, according to Redfin's data. By contrast, Omaha, Neb., Grand Rapids, Mich., and Boise, Idaho markets' sales paces are increasing year-over-year by an average 5.7 percent.

“Sellers in these markets are learning that they need to adjust their strategy. They aren’t seeing the same level of interest from buyers that there was a year ago. As a result, sellers are having to wait longer for offers, and more sellers are dropping their list price to attract buyers,” said Redfin chief economist, Daryl Fairweather.

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