Redfin: Homebuyer Demand Increased Modestly in August Despite Fewer Homes to Choose From

Redfin Housing Demand Index Up 1.7% from July, Down 17.9% from
Last August

Denver Posted the Most Notable Changes in Demand: Up 92.2% Month
Over Month, Down 36.6% Year Over Year

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.

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%.

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.

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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.

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.

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Contacts

Redfin Journalist Services:
Rachel Musiker, 206-588-6863
press@redfin.com