Homebuying activity is finishing the year on a high note, with demand at its strongest levels in months. According to real estate marketing platform Redfin's Homebuyer Demand Index, homebuying demand is up 7% from last year, while mortgage-purchase applications have jumped 17% in the past month. Pending home sales are also up 6.5% year-over-year.
Despite high mortgage rates and home prices, several factors are driving this demand. Many buyers waited until after the election to act, leading to a surge in activity. Additionally, buyers have adjusted to consistently elevated mortgage rates, which currently average 6.81%.
“The market is strong, with a lot of pent-up demand after a slow summer and early fall,” said Mimi Trieu, a Redfin Premier agent in the Bay Area. “Buyers realized mortgage rates may not drop below 5%, and probably not below 6%, in the near future. They are also noticing there are not many desirable, move-in ready homes for sale that are priced reasonably, so they’re pushing forward and negotiating for good deals. Homes that have been sitting on the market since the summer or early fall are finally selling.” Read more
