Housing Demand Was Up Nearly 5 Percent Year-Over-Year in January 2018

From January 2017, Redfin's Housing Demand Index went up 4.8 percent in January 2018, with 13.7 percent more homebuyers requesting home tours.

“Inventory has been deteriorating for more than two years, yet 2018 started off with buyer demand stronger than in any previous January we’ve measured,” said Redfin chief economist Nela Richardson. Indeed, January was the 32nd consecutive month in which supply went down. Richardson added that “Strong local labor markets helped keep buyers enthusiastic about homeownership despite headwinds.”

January offers and sales were heavily restrained by a 19.9 percent year-over-year decline in inventory, the largest since at least 2014, when we first began tracking the metric for the 15 markets included in the Demand Index. With mortgage rates and home prices expected to rise and nearly one in five homes already selling above list price in January, buyers contending for a diminishing supply of homes can expect a competitive season ahead.

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