February 2018 Had Sharp Drop in Homebuyer Demand

February 2018 had the lowest measured homebuyer demand in 11 months, and the sharpest month-over-month drop since January 2013, according to new data from Redfin.

While the number of buyers making offers fell 18 percent from January to February, the number of buyers requesting home tours fell by 12.4 percent. “There are still plenty of people touring homes; there just aren’t enough of homes to satisfy all the buyers who want to make offers,” said Redfin head of analytics Pete Ziemkiewicz. “We’ve started off each of the past three years with inventory down double-digits from the year before, which has held back buyer activity until enough new listings hit the market to get the offers flowing in the Spring.”

February marked 33 consecutive months of declining home supply across the 15 metros covered by the Demand Index, with 13.6 percent fewer homes for sale than a year earlier. The inventory shortage, paired with strong demand, has driven rapid home-price appreciation. The Demand Index is based on thousands of Redfin customers requesting home tours and writing offers. The Demand Index is adjusted for Redfin’s market share growth. A level of 100 represents the historical average for the three-year period from January 2013 to December 2015.

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