Redfin’s Housing Demand Index gained after several flat months
Homebuying activity picked up in September as buyers saw more favorable conditions.
The Redfin Housing Demand Index, which had been flat since May at 124, increased from August to September to reach 131. There was an 11.2% rise in the number of people requesting home tours – a 16 month high- while offer-writing was up 8.1%.
"There are a couple of explanations for the increase in buyer activity from August to September," said Redfin Chief Economist Daryl Fairweather, who authored today's report. "One is that rising mortgage rates motivated some buyers to look for a home before rates rise again. Second, inventory usually falls from August to September, but this year it rose 0.7%, giving buyers more homes to choose from."
He added that increased inventory means that buyers are more likely to take longer to decide on a home for fear of making a wrong choice; a luxury that more choice enables.
Buyers want to fall in love
However, the rise in activity may be down to curiosity rather than urgency to buy a home. And that is reflected by a change in the threshold needed for buyers to write an offer.
"Buyers tell me they like a home, but they don't love it. Last year, buyers would jump to offer on a home they only liked, but now they are waiting to fall in love," said Alec Traub, a Redfin agent in Los Angeles.
