Demand for houses was lower in July as the shortage of inventory and high prices weighed on homebuyers
Demand for houses was lower in July as the shortage of inventory and high prices weighed on homebuyers.
Redfin’s Demand Index was down 5% from its all-time high of 130 in June to 127 in July, but was still 29.7% above the level of July 2016. The index is based on Redfin customers requesting home tours and writing offers and is adjusted for the online brokerage’s market share.
“Buyer demand has been stronger so far in 2017 than last year, but the combination of low inventory and rising home prices is taking its toll heading into the fall,” said Redfin chief economist Nela Richardson. “Sellers are still in control of the market, but their advantage is narrowing as buyers are becoming less willing or able to chase escalating prices.”
The index analyses 15 metros and noted that there was a drop in available homes to buy of 13.9% in July compared with the same month of 2016; it was the 26th consecutive month of decline. New listings were down almost 6%.
As tight supply increased market competition and drove prices higher, requests for home tours slipped 3.3% in the month from June to July and those who wrote offers dropped 11%.
However, home tour requests were up 35.3% year-over-year while 21% more buyers wrote offers.
Redfin’s Demand Index was down 5% from its all-time high of 130 in June to 127 in July, but was still 29.7% above the level of July 2016. The index is based on Redfin customers requesting home tours and writing offers and is adjusted for the online brokerage’s market share.
“Buyer demand has been stronger so far in 2017 than last year, but the combination of low inventory and rising home prices is taking its toll heading into the fall,” said Redfin chief economist Nela Richardson. “Sellers are still in control of the market, but their advantage is narrowing as buyers are becoming less willing or able to chase escalating prices.”
The index analyses 15 metros and noted that there was a drop in available homes to buy of 13.9% in July compared with the same month of 2016; it was the 26th consecutive month of decline. New listings were down almost 6%.
As tight supply increased market competition and drove prices higher, requests for home tours slipped 3.3% in the month from June to July and those who wrote offers dropped 11%.
However, home tour requests were up 35.3% year-over-year while 21% more buyers wrote offers.
