{"id":57866,"date":"2017-04-25T04:31:18","date_gmt":"2017-04-25T11:31:18","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=57866"},"modified":"2020-10-06T17:08:08","modified_gmt":"2020-10-07T00:08:08","slug":"redfin-housing-demand-index-drops-amid-lower-than-expected-buyer-activity-in-march-remains-above-the-three-year-average","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/redfin-housing-demand-index-drops-amid-lower-than-expected-buyer-activity-in-march-remains-above-the-three-year-average\/","title":{"rendered":"Redfin Housing Demand Index Drops Amid Lower-Than-Expected Buyer Activity in March"},"content":{"rendered":"

The Redfin Housing Demand Index decreased 13.9 percent from February, to a seasonally adjusted level of 108 in March. While homebuyer demand has cooled from its record high of 132 in January, this was still the strongest March since 2013, when the Demand Index registered just one point higher at 109.<\/span><\/p>\n

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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.<\/span>
\nCompared to February, the seasonally adjusted number of buyers requesting tours was down 5.5 percent in March, and the seasonally adjusted number of buyers writing offers was down 22.8 percent.<\/span>
\nThe story in March was once again a limited selection of homes for sale, constraining the options for interested buyers. Across the 15 metros covered by the Demand Index, there were 12.5 percent fewer homes for sale than the previous March, marking the 22nd consecutive month of year-over-year inventory declines.
\n\u201cLack of selection is definitely an issue for my clients,\u201d said Nawab Manjee, a Redfin real estate agent in Chicago<\/a>, where the Demand Index level was at 109. \u201cFor example, large condo buildings that have hundreds of units will only have two or three listings, with the desirable ones getting snapped right up, where in a more balanced market, you\u2019d have 10 or 15 listings per building to browse, with the assurance that more were on the way.
\n\u201cMy advice to clients is to <\/span>set up online saved searches<\/span><\/a> for homes that meet your criteria, and the moment you see a property you potentially like listed, go see it the same day. It’s common for hot properties to get offers on the first day. If we get in fast and make a substantial offer, you may be able to convince the sellers to pull the listing off the market before the weekend, when you\u2019d be certain to face competition.\u201d \u00a0\u00a0<\/span>
\nAfter a very hot start to the beginning of the year, homebuyer demand is moderating. However, it\u2019s still well above levels seen at this time last year. On a year-over-year basis, demand in March was up 16.5 percent, with 19.2 percent more homebuyers going on tours, and 13.0 percent more buyers writing offers.
\n\u201cThe market is missing its moment because of too-low inventory,\u201d said Redfin chief economist Nela Richardson. \u201cMortgage rates are the lowest they’ve been this year. Meanwhile low unemployment rates and high consumer confidence should create continued momentum in homebuyer demand. But, instead, we\u2019re seeing demand cooling when it should be peaking. For this reason, we think the 2017 market will be a late bloomer, with new listings coming on later in the year and sales peaking in the early fall, instead of summer.\u201d<\/span><\/p>\n

Metro-Level Demand Highlights<\/h3>\n

Below, we provide a slideshow of local charts for each of the metros tracked by the Redfin Demand Index and highlight noteworthy trends and agent insights from a few markets. If you\u2019d like to learn more about a particular market, please email press@redfin.com. <\/span>
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