Redfin: Low Inventories Hamper Housing Demand

Redfin, Seattle, said home buyer demand slipped slightly in June from record highs in May as low inventories hampered buyers’ ability to make offers.

The company’s Housing Demand Index, which measures how many Redfin cusomers requested home tours in June and subsequently make offers, fell by 4.3 percent in June from May’s record 130. 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.

Despite the drop, homebuyer demand rose by 27.8 percent from a year ago.

Across the 15 metros covered by the Demand Index, Redfin noted 12.1 percent fewer homes for sale in June from a year ago, 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.”

Richardson said new listings fell by 3.3 percent from May and by 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,” she said.

The report can be accessed at https://www.redfin.com/blog/2017/08/redfin-housing-demand-index-slipped-in-june-from-mays-all-time-high.html.