The Redfin Housing Demand Index fell 5.0 percent from its all-time high of 130 in June to 124 in July. Still, the Demand Index was up 29.7 percent year over year. The Demand Index is adjusted for Redfin’s market share growth.
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. The underlying methodology to the Redfin Housing Demand Index was revised in August 2017 to improve the way it accounts for the company’s market share.
Across the 15 metros covered by the Demand Index, there were 13.9 percent fewer homes for sale in July than there were a year prior, and there was a 5.9 percent decline in new listings. July marked the 26th consecutive month of year-over-year inventory declines.
“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 seasonally adjusted number of buyers requesting home tours fell 3.3 percent from June to July, while the number of those who wrote offers dropped 11.0 percent. Compared to last year, 35.3 percent more buyers requested tours in July and 21.0 percent more wrote offers.
Metro-Level Demand Highlights
Below, we provide a slideshow of local charts for each of the metros tracked by the Redfin Housing Demand Index and highlight noteworthy trends from select markets. If you’d like to learn more about a particular market, please email firstname.lastname@example.org.
Baltimore had the largest increase in its Demand Index, up 26.5 percent month over month in July. Inventory there was down 18.6 percent year over year, but the number of homes newly listed in July was up 5.1 percent.
Boston saw the largest decrease in homebuyer activity in July, with its Demand Index down 35.2 percent from June. Inventory there was down 20.1 percent and new listings fell by 2.1 percent year over year.
For more detail on the Redfin Demand Index methodology, click here.