Redfin said the upcoming holiday season signals decreased competition among buyers
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While demand for home tours among buyers remained relatively unchanged from September to October, the lack of homes to bid on drove a decrease in offer activity, according to the Housing Demand Index (HDI) released by Redfin.
The HDI slipped 1.7% to 134 in October from 137 in September. A level of 100 represents the historical average for the three-year period from January 2013 to December 2015. On a year-over-year basis, the HDI, which is adjusted for Redfin’s market-share growth, rose 26.6% in October.
The change in buyer demand for home tours was essentially flat over the same period, increasing 0.6% on a seasonally adjusted basis. However, the number of buyers who made an offer fell 5.4%. Compared to the same period in 2016, there was a 43.7% increase in buyers requesting tours and a 4.4% rise in the number of buyers writing offers.
The monthly decline in offers came amidst a 14.8% year-over-year decline in homes for sale across the 15 metros covered by the HDI. October represents the 29th consecutive month of year-over-year declines in inventory in the covered markets and the fourth straight month of double-digit declines. Despite continued decreases in inventory, new listings gained for the first time in five months in October, recording a 2.6% increase.
“The fact that touring activity remained constant while offers dropped off in October tells us that the buyers are still there; there’s just not much to bid on,” Redfin Chief Economist Nela Richardson said. “The small boost in the number of homes newly listed for sale is certainly the bright spot of this report. Additionally, the most serious buyers can rejoice that we are nearing the holidays, which bring less competition from other buyers for homes that sellers are often very eager to unload before the new year.”
Related stories:
Inventory shortage keeps housing demand steady
Redfin: Home prices surge, inventory plunges in August
The HDI slipped 1.7% to 134 in October from 137 in September. A level of 100 represents the historical average for the three-year period from January 2013 to December 2015. On a year-over-year basis, the HDI, which is adjusted for Redfin’s market-share growth, rose 26.6% in October.
The change in buyer demand for home tours was essentially flat over the same period, increasing 0.6% on a seasonally adjusted basis. However, the number of buyers who made an offer fell 5.4%. Compared to the same period in 2016, there was a 43.7% increase in buyers requesting tours and a 4.4% rise in the number of buyers writing offers.
The monthly decline in offers came amidst a 14.8% year-over-year decline in homes for sale across the 15 metros covered by the HDI. October represents the 29th consecutive month of year-over-year declines in inventory in the covered markets and the fourth straight month of double-digit declines. Despite continued decreases in inventory, new listings gained for the first time in five months in October, recording a 2.6% increase.
“The fact that touring activity remained constant while offers dropped off in October tells us that the buyers are still there; there’s just not much to bid on,” Redfin Chief Economist Nela Richardson said. “The small boost in the number of homes newly listed for sale is certainly the bright spot of this report. Additionally, the most serious buyers can rejoice that we are nearing the holidays, which bring less competition from other buyers for homes that sellers are often very eager to unload before the new year.”
Related stories:
Inventory shortage keeps housing demand steady
Redfin: Home prices surge, inventory plunges in August
