Redfin Housing Demand Index Reached a New High in December
Homebuyer Demand Increased 15 Percent in the Last Month of the Year
SEATTLE–(BUSINESS WIRE)–The Redfin
Housing Demand Index increased 15.1 percent to a seasonally adjusted
level of 124 in December, according to Redfin (www.redfin.com),
the next-generation real estate brokerage. This marks the highest level
recorded since January 2013, the first month measured by the Redfin
Demand Index.
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.
“In general, buyers are attracted to brand-new listings,” said Redfin
chief economist Nela Richardson. “In December, we started seeing homes
that spent time on the market, perhaps because they were not in the
hottest neighborhood or needed renovation, finally get offers. Based on
the number of sellers who’ve contacted Redfin this month, we expect a
sizeable increase in new listings in the next two months. With new
listings on the way and this year’s buyers willing to take a look at
older inventory, we anticipate that sales in early 2017 will be strong.”
Compared to the previous December, homebuyer demand was up 26.3 percent,
buoyed by a 36.4 percent year-over-year increase in homebuyers
requesting tours and 10.2 percent year-over-year increase in buyers
making offers.
Among the metros tracked by Demand Index, San Francisco posted the
biggest increase in demand compared to 2015, with its Demand Index up
114.1 percent to a level of 102 in December. With three consecutive
months of levels just over 100, San Francisco’s homebuyer demand may
have normalized after a tumultuous 2015 and an uneven start to 2016.
“In 2015 at this time, we were at a peak in pricing in San Francisco.
Buyers were discouraged because they weren’t sure if prices were going
to continue to climb or if they were going to fall. Also, a number of
tech companies, including Twitter, announced layoffs in the fall of
2015. Buyers were taking a wait-and-see approach. This year, prices are
more stable and with interest rates spiking after the election, we have
people wanting to jump in the game before rates go higher. The interest
rate spike inspired several of my buyers to put more aggressive offers
on homes,” said Winnie Lai, Redfin real estate agent in San Francisco.
Los Angeles posted the biggest month-over-month increase in demand, up
38.1 percent in December.
For additional national and local data and analysis, including
metro-level charts and insights from real estate agents, please visit: https://www.redfin.com/blog/2017/01/the-redfin-housing-demand-index-reached-a-new-high-in-december.html
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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 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 highly accurate automated home-value 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 and
saved customers more than $335 million in fees through 2015.
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
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press@redfin.com
