SEATTLE--(BUSINESS WIRE)--The Redfin Housing Demand Index increased 11.3 percent from April to a seasonally adjusted record level of 136 in May, according to Redfin (www.redfin.com), the next-generation real estate brokerage. This was the highest level of homebuyer demand recorded since Redfin began tracking this data in January 2013.
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.
Compared to April, the seasonally adjusted number of buyers requesting tours was up 9.0 percent in May, and the seasonally adjusted number of buyers writing offers was up 15.4 percent. In a stark contrast to the surge in demand, inventory was 11.8 percent lower in May than a year earlier across the 15 metros covered by the Demand Index. May marked the 24th consecutive month of year-over-year inventory declines despite a 4.2 percent increase in the number of homes newly listed for sale. This means that people are buying up homes faster than they are being listed.
“On paper, the numbers we’ve been presenting all year make the market look like a seller’s haven,” said Redfin chief economist Nela Richardson. “But very often sellers are buyers too. Sellers in hot markets can quickly generate several competing offers, but what they really need to be on their way to their next home purchase is a committed buyer who will make it to the closing table without delays or hassles. To provide this assurance, savvy buyers aren’t just offering the highest price; they are using creative strategies like pre-inspections and non-refundable deposits to demonstrate to sellers their commitment to close the deal.”
To read the full report, including metro-level demand data and charts, please visit: https://www.redfin.com/blog/2017/06/redfin-housing-demand-index-hit-a-new-high-in-may.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 $40 billion in home sales.
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