New analysis of Redfin’s Housing Demand Index shows that demand for housing remained stagnant in December while inventory continued to drop.
While the monthly rate remained stagnant, falling just 0.6 percent from November, the year-to-year numbers show how demand has continued to grow against in response to the low supply. The December index was up 8.4 percent compared with 2016, while the number of buyers actually making offers fell 5.9 percent.
“Buyer demand is still strong but wilted a bit in the face of low inventory,” said Redfin chief economist Nela Richardson. “The housing market ended 2017 with 170,000 fewer listings than it had a year earlier, which means there were fewer homes for buyers to tour and make offers on. For the fourth consecutive year, inventory will be the major factor shaping the housing market in 2018.”
