SEATTLE--(BUSINESS WIRE)--Demand for homes grew for the second month in a row in August, according to Redfin (www.redfin.com), the next-generation real estate brokerage. The Redfin Housing Demand Index, based on thousands of Redfin customers requesting home tours and writing offers, increased 1.7 percent 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,” said 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, 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 percent 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 percent. 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 percent from a year earlier in August, which marked the 15th month in a row of declines.
- 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.
- 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%.
To read the full report, complete with data, charts, insights and methodology, click or paste the following link: https://www.redfin.com/blog/2016/09/demand-strengthened-again-in-august-putting-some-wind-in-the-markets-sail-heading-into-fall.html.
See Redfin’s data center for the latest updates on the Demand Index.
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 customer'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 most accurate home-value estimate online, the Redfin 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 to date, and saved customers more than $335 million in fees, and counting.
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