For the fourth month in a row, the Redfin Housing Demand Index reading was relatively unchanged in August. Growing by only 0.3 percent from July, more price drops and stalling demand are giving buyers more options.
Demand overall is lower than the readings from the same months in 2017. August's reading was down 11.9 percent annually, continuing the six-month downward trend. Additionally, 3.5 percent fewer buyers are requesting home tours through Redfin this year over last, and buyers making offers fell 20.2 percent in that time in August, marking the sharpest decrease since March 2016. Redfin senior economist Taylor Marr attributes softening demand to tax reform and higher home prices.
The Redfin Housing Demand Index is based on thousands of Redfin customers requesting home tours and writing offers in 15 major metro areas in the U.S. The Demand Index is adjusted for Redfin’s market share growth and for seasonality. A level of 100 represents the level of homebuyer demand posted in January 2014. You can learn more about the methodology behind the Redfin Housing Demand Index and the data sources we use to measure housing activity prior to purchase. The Demand Index methodology was revised in July to improve the way it accounts for seasonality.
