The Redfin Housing Demand Index fell 4.3 percent from May’s all-time high to 130 in June. Still, homebuyer demand was up 27.8 percent year over year.
The Demand Index is based on thousands of Redfin customers requesting home tours and writing offers. A level of 100 represents the historical average for the three-year period from January 2013 to December 2015.
Compared to May, the seasonally adjusted number of buyers requesting tours was essentially flat, down just 0.2 percent last month. The seasonally adjusted number of buyers writing offers fell by 11.3 percent from May to June.
Across the 15 metros covered by the Demand Index, there were 12.2 percent fewer homes for sale in June than there were a year prior, marking the 25th consecutive month of year-over-year inventory declines and the sixth consecutive month of double-digit declines.
“In this market, homebuyers have to move fast, yet high prices and low inventory are slowing down even the most earnest of house hunters,” said Redfin chief economist Nela Richardson. “Buyers toured in full force last month, even though there were fewer homes hitting the market. New listings fell 3.3 percent from May and were down 1.6 percent from a year ago. Faced with a low supply of homes for sale and extremely competitive conditions, many homebuyers are struggling to make it to the offer stage.”
We asked Redfin agents across the country to share the advice they’re giving buyers who are competing in this tight market. Of course, the recommended plan of action varied by location. In Chicago, Redfin agent Alex Haried advises patience; he expects more inventory to hit the market in the coming months. In Los Angeles, Redfin agent Cody Coffman does not think his hot market will cool off this year. He is telling his clients who are serious about getting a home under contract in 2017 not to wait, and to put in their most competitive offers now.
“The inspection contingency is the most compelling factor for sellers who are evaluating several close offers,” said Redfin agent Mary Bazargan, who represents home sellers in Washington, D.C. “Waiving your inspection contingency shows the seller that you’re committed to the property with its flaws, and guarantees that the transaction won’t be delayed by repair negotiations or other associated hiccups. In D.C., it’s common for buyers to conduct pre-inspections, in which the inspector does an inspection of the home before an offer is submitted. Most sellers are happy to accommodate these appointments.”
Below, we provide a slideshow of local charts for each of the metros tracked by the Redfin Housing Demand Index and highlight noteworthy trends and agent insights from select markets. If you’d like to learn more about a particular market, please email press@redfin.com.
