Redfin Housing Demand Index Virtually Flat from July to August Due to Continued Inventory Shortage
September 28 2017 - 12:07PM
Business Wire
The number of Redfin customers touring and
writing offers was basically even from July to August, but
increased year over year
(NASDAQ:RDFN) — The Redfin Housing Demand Index remained
virtually flat, up slightly from 126 in July to 127 in August,
according to Redfin (www.redfin.com), the next-generation real
estate brokerage. Still, the Demand Index increased 27.7 percent
year over year. The Demand Index is adjusted for Redfin’s market
share growth.
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.
Across the 15 metros covered by the Demand Index, there were
13.9 percent fewer homes for sale in August than there were a year
prior, and there was a 2.7 percent decline in new listings. August
marked the 27th consecutive month of year-over-year inventory
declines in these markets.
“High consumer confidence and low interest rates have powered
homebuyer demand, but too-low inventory has constrained home sales
all year,” said Redfin chief economist Nela Richardson. “The
Federal Reserve is now setting the stage for a slow, steady
increase in mortgage rates in October by beginning to sell its
mortgage portfolio. Fall buyers are likely to face slightly higher
financing costs in addition to strong price growth.”
The seasonally adjusted number of buyers requesting home tours
and writing offers remained flat from July to August, decreasing
0.8 percent and increasing 0.1 percent respectively. Compared to
last year, 42.3 percent more buyers requested tours in August and
8.2 percent more wrote offers.
At the metro level, Oakland had the largest Demand Index
increase in August, up 29 percent from July and 43 percent year
over year. Inventory was down 30 percent year over year and new
listings fell 5.3 percent.
“August has traditionally been one of the slowest months in
Oakland for homebuyer activity as people go on vacation and finish
up their family activities before the kids head back to school,”
said Redfin Oakland agent Tom Hendershot. “This year, August demand
has really ramped up compared to July, and we expect September to
be a very active month as long as more new inventory hits the
market.”
To read the full report, including metro-level demand data and
charts, please visit:
https://www.redfin.com/blog/2017/09/redfin-housing-demand-index-virtually-flat-from-july-to-august-due-to-continued-inventory-shortage.html
About Redfin
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.
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 Data Center. To be added to
Redfin's press release distribution list, subscribe here. To view
Redfin's press center, click here.
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version on businesswire.com: http://www.businesswire.com/news/home/20170928006060/en/
Redfin Journalist Services:Jon Whitely,
206-588-6863press@redfin.com
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