SEATTLE--(BUSINESS WIRE)--(NASDAQ: RDFN) — The Redfin Housing Demand Index fell 1.7 percent from 137 in September to 134 in October, according to Redfin (www.redfin.com), the next-generation real estate brokerage. Still, the Demand Index, which is adjusted for Redfin’s market share growth, increased 26.6 percent year over year in October.
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 14.8 percent fewer homes for sale last month than there were a year prior. October marked the 29th straight month of year-over-year inventory declines in these major markets and the fourth consecutive month of double-digit declines. Meanwhile, new listings posted a much needed gain for the first time in five months, up 2.6 percent in October.
The seasonally adjusted number of buyers requesting home tours remained essentially flat from September to October, increasing 0.6 percent, while the number making offers fell 5.4 percent. Compared to last year, 43.7 percent more buyers requested tours in October and 4.4 percent more wrote offers.
“The fact that touring activity remained constant while offers dropped off in October tells us that the buyers are still there; there’s just not much to bid on,” said Redfin chief economist Nela Richardson. “The small boost in the number of homes newly listed for sale is certainly the bright spot of this report. Additionally, the most serious buyers can rejoice that we are nearing the holidays, which bring less competition from other buyers for homes that sellers are often very eager to unload before the new year.”
To read the full report, including metro-level demand charts, please visit: https://www.redfin.com/blog/2017/11/redfin-housing-demand-index-dipped-1-7-percent-from-september-to-october-still-26-6-percent-higher-than-last-year.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 $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.