Recent existing and new home sales data may have shown a weak start to 2018 but demand was higher than usual in January says Redfin
Recent existing and new home sales data may have shown a weak start to 2018 but demand was higher than usual in January says Redfin.
Its Housing Demand Index increased to 130.5, up 0.5% from December, with the seasonally-adjusted number of those requesting home tours flat but those making offers up 1.2%.
Year-over-year there was a rise of 4.8% with home-tour requests up 13.7% but offers down 9.7%.
"Inventory has been deteriorating for more than two years, yet 2018 started off with buyer demand stronger than in any previous January we've measured," said Redfin chief economist Nela Richardson. "Along with inventory declines, buyers contended with rising mortgage rates, an overhaul of the tax code and a jumpy stock market. However, strong local labor markets helped keep buyers enthusiastic about homeownership despite headwinds."
Redfin data shows a 19.9% drop in inventory across the 15 markets tracked. It was the largest decline since 2014 and was the 32nd consecutive decrease in available homes for sale.
The firm’s agents say that the effect of this shortage of homes is felt most strongly in affordable price ranges where homes are typically selling fast and for above the asking price.
