{"id":54586,"date":"2016-10-25T05:00:45","date_gmt":"2016-10-25T12:00:45","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=54586"},"modified":"2020-10-06T17:08:12","modified_gmt":"2020-10-07T00:08:12","slug":"redfin-housing-demand-index-reached-a-three-year-high-in-september","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/redfin-housing-demand-index-reached-a-three-year-high-in-september\/","title":{"rendered":"Redfin Housing Demand Index Reached a Three-Year High in September"},"content":{"rendered":"

The Redfin Housing Demand Index, based on thousands of Redfin customers requesting home tours and writing offers, increased 13.3 percent from last month to a seasonally adjusted level of 105 in September. This is the highest level of demand seen since June 2013. <\/span><\/p>\n

\"National_deseas\"<\/figure>\n

Last year at this time, the Redfin Housing Demand Index was at 101. But this September, 31.8 percent more potential homebuyers toured homes than last year and 26.8 percent more made offers, indicating that there is a healthy pool of buyers willing and ready to purchase, should they find the right home. <\/span>
\n\u201cBuyer demand gained momentum after Labor Day when a pop of fresh listings hit the market,\u201d said Redfin chief economist Nela Richardson. New listings are up 3.3 percent compared to last year at this time. \u201cMore than any other factor, new listings pulled buyers into the market in September. The pace of this demand will only be sustained if the supply of homes for sale continues to improve.\u201d<\/span>
\nWhile some new listings have hit the market, Redfin agents are still seeing the need for even more supply, and are advising buyers to be patient. <\/span>
\n\u201cIt\u2019s very busy right now, much more so than you would normally expect this time of year,\u201d said Lamar Austin, a Redfin real estate agent in Chicago. \u201cDespite the surge of activity, there still aren\u2019t enough homes for sale to satisfy demand. Every time something new comes on the market, my clients are touring to see if it\u2019s a good fit. Homes that are appealing often get bid up, while many of my clients are having to prolong the timeframe of their search, and even take month-to-month lease extensions, while they look. There are lots of new condo developments in the works, and that will help \u2013 but most of them won\u2019t be ready until the spring.\u201d<\/span>
\nThe Redfin Housing Demand Index, the industry\u2019s first and only measure of homebuyer activity prior to purchase, has a benchmark of 100, representing the three-year historical average from January 2013 through December 2015. A Demand Index reading over 100 reflects high, or stronger-than-expected demand. A reading below 100 means demand is relatively weak and there is less activity than expected. The Demand Index is a forward-looking metric that is highly correlated with existing-home sales levels seen two months later as reported by the National Association of Realtors.<\/span><\/p>\n

Metro-Level Demand<\/h3>\n

Of the 13 metros tracked, six had demand numbers over 100, led by Boston\u2019s 129. Eleven of the 13 saw demand increases compared to the previous month. Among metros slightly below the 100 benchmark, all but two had Demand Index readings above 95. <\/span>
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