Tight supply of homes saw demand stagnate towards the end of 2017 according to Redfin
Tight supply of homes saw demand stagnate towards the end of 2017 according to Redfin.
The brokerage says that, based on client requests for home tours and writing offers, its Demand Index in December was down 0.6% as home tour requests were down 3.4% and offers written dropped 1.8% (seasonally adjusted).
"Buyer demand is still strong, but wilted a bit in the face of low inventory," said Redfin chief economist Nela Richardson. "The housing market ended 2017 with 170,000 fewer listings than it had a year earlier, which means there were fewer homes for buyers to tour and make offers on. For the fourth consecutive year, inventory will be the major factor shaping the housing market in 2018."
In the context of a 20% drop in inventory year-over-year, demand was strong despite the monthly dip.
Compared with December 2016, the Demand Index was up 8.4% and the number of buyers requesting tours was up 16.7%. Meanwhile, the number of buyers making offers slid 5.9%.
The brokerage says that, based on client requests for home tours and writing offers, its Demand Index in December was down 0.6% as home tour requests were down 3.4% and offers written dropped 1.8% (seasonally adjusted).
"Buyer demand is still strong, but wilted a bit in the face of low inventory," said Redfin chief economist Nela Richardson. "The housing market ended 2017 with 170,000 fewer listings than it had a year earlier, which means there were fewer homes for buyers to tour and make offers on. For the fourth consecutive year, inventory will be the major factor shaping the housing market in 2018."
In the context of a 20% drop in inventory year-over-year, demand was strong despite the monthly dip.
Compared with December 2016, the Demand Index was up 8.4% and the number of buyers requesting tours was up 16.7%. Meanwhile, the number of buyers making offers slid 5.9%.
