Redfin Housing Demand Index Cooled in October, Dropping to Three-Year Average
After a Strong September, Fewer Buyers Toured Homes and Made
Offers in October
SEATTLE–(BUSINESS WIRE)–The Redfin Housing Demand Index declined 3.5 percent to a
seasonally-adjusted level of 100 in October, according to Redfin (www.redfin.com),
the next-generation real estate brokerage.
A level of 100 represents the historical average for the three-year
period from January 2013 to December 2015, meaning that current demand
is at recent historical norms.
In October, the number of Redfin customers requesting home tours fell
3.7 percent from September, and the number of customers writing offers
on homes fell 5.9 percent. Both of these measures posted double-digit
increases in September.
One likely culprit is a shortage of homes to choose from, something that
has put a damper on homebuyer enthusiasm month after month. Across the
15 metro areas tracked by the Demand Index, the number of homes listed
in October was 9.5 percent lower than a year earlier. Those numbers
dovetail with the shortages of homes reported in the most recent Redfin
Real-Time Housing Market Tracker.
The Denver area in particular has had a lack of homes on the market. The
number of homes for sale was down 22.3 percent compared to last year.
Overall, the Redfin Demand Index in Denver was at a level of 102, down
from 113 in September.
“There are still very few homes for sale in the Denver area,” said
Redfin real estate agent Corey Keach. “But after a slow October, buyer
interest has been picking up over the past week or two. Last year, I
felt it in January, with people wanting to beat the busy spring season.
My sense is that people are getting an even earlier jump this year. For
homes priced below $400,000, we’re once again seeing multiple offers
above the asking price. There simply aren’t enough homes to meet demand
in that price range.”
Phoenix posted the largest month-over-month increase in demand, up 28
percent to 105 in October. Demand fell the most in San Diego, where the
Demand Index dropped 21 percent to 87 in October.
Demand may be coming back up. In Chicago, where Redfin real estate agent
Niko Voutsinas works, homebuyer demand was relatively tepid in October,
at a Demand Index level of 91. He has seen activity pick up in the past
couple weeks.
“Since the election, I’ve been extremely busy helping clients make
offers and get under contract,” said Voutsinas. “Some people are a
little bit upset about mortgage
rates increasing, but most are still pushing forward. Buyers feel
the rates will only continue to rise, so they might as well try to buy
now, especially before the frenetic spring market.”
To read the full report, complete with charts, metro-level data and
insights from local agents, please visit: https://www.redfin.com/blog/2016/11/housing-demand-cooled-in-october-dropping-to-a-three-year-average.html
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About Redfin Corporation
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 highly accurate automated home-value estimate.
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 $31 billion in home sales and
saved customers more than $335 million in fees through 2015.
For more information or to contact a local Redfin real estate agent,
visit www.redfin.com.
To learn about housing market trends and download data, visit the Redfin
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press@redfin.com
