SEATTLE—Demand for homes grew for the second month in a row in August, according to a recent report from locally based Redfin. The Redfin Housing Demand Index, based on thousands of Redfin customers requesting home tours and writing offers, increased 1.7% from July to a seasonally adjusted level of 93 in August. The Redfin Housing Demand Index has a benchmark of 100, representing the three-year historical average from January 2013 through December 2015.
“Now we're seeing the market catch a new breath after pausing briefly this summer,” says Redfin chief economist Nela Richardson. “Buyer demand strengthened for the second month in a row, signaling that the market has some wind in its sails going into the fall.”
At the same time, Richardson says, the 2016 home-buying season has been less ferocious than it was the past three years. “Bidding wars are a tad less frequent, price growth is moderating and even in hot markets homes are sitting on the market a bit longer. All told, this is not a market in decline, it's a market finally finding its normal.”
The boost in homebuyer activity was driven by a surge in the number of Redfin customers making offers on homes, up 9.8% from July. The increase in overall demand would have been higher if not for the fact that the number of customers who requested tours fell by 3.6%. Redfin agents report that there is still a very large pool of people in the market to buy a home right now, but there simply aren't enough homes for them to take action on. Inventory across the 15 markets covered by the Demand Index fell 9.4% from a year earlier in August, which marked the 15th month in a row of declines.
National Highlights
*The Redfin Housing Demand Index posted a reading of 93 in August. This represents a 1.7% month-over-month increase and a 17.9% year-over-year decline in homebuyer demand. August marked the seventh-consecutive month of year-over-year declines in the Demand Index.
*The number of Redfin customers requesting home tours fell by 3.6% from July and increased by 5.3% from last year.
*The number of Redfin customers writing offers was up 9.8% month over month and fell by 6.7% year over year.
Metro-Level Highlights
*Denver posted the biggest month-over-month gain in homebuyer demand, up 92.2% in August. *San Francisco posted the largest monthly decrease, with the local Demand Index down 33.6%. *San Diego saw the biggest annual increase in demand, up 6.8%.
*The biggest year-over-year decrease in demand was seen in Denver, down 36.6%.
SEATTLE—Demand for homes grew for the second month in a row in August, according to a recent report from locally based Redfin. The Redfin Housing Demand Index, based on thousands of Redfin customers requesting home tours and writing offers, increased 1.7% from July to a seasonally adjusted level of 93 in August. The Redfin Housing Demand Index has a benchmark of 100, representing the three-year historical average from January 2013 through December 2015.
“Now we're seeing the market catch a new breath after pausing briefly this summer,” says Redfin chief economist Nela Richardson. “Buyer demand strengthened for the second month in a row, signaling that the market has some wind in its sails going into the fall.”
At the same time, Richardson says, the 2016 home-buying season has been less ferocious than it was the past three years. “Bidding wars are a tad less frequent, price growth is moderating and even in hot markets homes are sitting on the market a bit longer. All told, this is not a market in decline, it's a market finally finding its normal.”
The boost in homebuyer activity was driven by a surge in the number of Redfin customers making offers on homes, up 9.8% from July. The increase in overall demand would have been higher if not for the fact that the number of customers who requested tours fell by 3.6%. Redfin agents report that there is still a very large pool of people in the market to buy a home right now, but there simply aren't enough homes for them to take action on. Inventory across the 15 markets covered by the Demand Index fell 9.4% from a year earlier in August, which marked the 15th month in a row of declines.
National Highlights
*The Redfin Housing Demand Index posted a reading of 93 in August. This represents a 1.7% month-over-month increase and a 17.9% year-over-year decline in homebuyer demand. August marked the seventh-consecutive month of year-over-year declines in the Demand Index.
*The number of Redfin customers requesting home tours fell by 3.6% from July and increased by 5.3% from last year.
*The number of Redfin customers writing offers was up 9.8% month over month and fell by 6.7% year over year.
Metro-Level Highlights
*Denver posted the biggest month-over-month gain in homebuyer demand, up 92.2% in August. *San Francisco posted the largest monthly decrease, with the local Demand Index down 33.6%. *San Diego saw the biggest annual increase in demand, up 6.8%.
*The biggest year-over-year decrease in demand was seen in Denver, down 36.6%.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
