Lack of Inventory Continues to Hamper Tour and Offer Activity
SEATTLE – (NASDAQ: RDFN) — The Redfin Housing Demand Index fell 6.2 percent from 136 in October to 127 in November, according to Redfin (www.redfin.com), the next-generation real estate brokerage. The seasonally adjusted number of buyers requesting home tours fell slightly by 1.9 percent, while the number making offers fell 14.7 percent month over month.
The Demand Index is based on thousands of Redfin customers requesting home tours and writing offers. A level of 100 represents the historical average for the three-year period from January 2013 to December 2015.
“Three years of low inventory is taking its toll on buyer demand in terms of tour and offer activity,” said Redfin chief economist Nela Richardson. “People still want to buy homes, especially before mortgage interest rates increase and prices rise even more. But there just aren’t enough homes for sale, especially at lower- to mid-level prices.”
While demand softened month over month, the story is different looking at year-over-year numbers. Compared to last year, the Demand Index increased 29.1 percent in November. The number of buyers requesting tours increased 41.3 percent, and 10.5 percent more wrote offers. Demand has consistently remained about 30 percent higher than last year’s levels since May.
Across the 15 metros covered by the Demand Index, there were 18 percent fewer homes for sale last month than at the same time last year. November marked the 30th straight month of year-over-year inventory declines in these major markets and the fifth consecutive month of double-digit declines. New listings increased modestly by 1.5 percent year over year in November.
To read the full report, including metro-level demand charts, please visit: https://www.redfin.com/blog/2017/12/redfin-housing-demand-index-fell-6-2-from-october-to-november.html
Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry’s lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.
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