Homebuyer Demand Increased 15 Percent in the Last Month of the Year
SEATTLE–(BUSINESS WIRE)–The Redfin
Housing Demand Index increased 15.1 percent to a seasonally adjusted
level of 124 in December, according to Redfin (www.redfin.com),
the next-generation real estate brokerage. This marks the highest level
recorded since January 2013, the first month measured by the Redfin
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.
“In general, buyers are attracted to brand-new listings,” said Redfin
chief economist Nela Richardson. “In December, we started seeing homes
that spent time on the market, perhaps because they were not in the
hottest neighborhood or needed renovation, finally get offers. Based on
the number of sellers who’ve contacted Redfin this month, we expect a
sizeable increase in new listings in the next two months. With new
listings on the way and this year’s buyers willing to take a look at
older inventory, we anticipate that sales in early 2017 will be strong.”
Compared to the previous December, homebuyer demand was up 26.3 percent,
buoyed by a 36.4 percent year-over-year increase in homebuyers
requesting tours and 10.2 percent year-over-year increase in buyers
Among the metros tracked by Demand Index, San Francisco posted the
biggest increase in demand compared to 2015, with its Demand Index up
114.1 percent to a level of 102 in December. With three consecutive
months of levels just over 100, San Francisco’s homebuyer demand may
have normalized after a tumultuous 2015 and an uneven start to 2016.
“In 2015 at this time, we were at a peak in pricing in San Francisco.
Buyers were discouraged because they weren’t sure if prices were going
to continue to climb or if they were going to fall. Also, a number of
tech companies, including Twitter, announced layoffs in the fall of
2015. Buyers were taking a wait-and-see approach. This year, prices are
more stable and with interest rates spiking after the election, we have
people wanting to jump in the game before rates go higher. The interest
rate spike inspired several of my buyers to put more aggressive offers
on homes,” said Winnie Lai, Redfin real estate agent in San Francisco.
Los Angeles posted the biggest month-over-month increase in demand, up
38.1 percent in December.
For additional national and local data and analysis, including
metro-level charts and insights from real estate agents, please visit: https://www.redfin.com/blog/2017/01/the-redfin-housing-demand-index-reached-a-new-high-in-december.html
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saved customers more than $335 million in fees through 2015.
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