Demand for homes is being hindered by continued lack of supply, and August’s sales numbers will likely slow because of it
Despite the fact that there are still more buyers than sellers and homes are selling quickly and, often times, above list price, homebuyer demand fell 17 percent in June, posting a decline for the fifth consecutive month.
Additionally, the Redfin Housing Demand Index, which is based on thousands of Redfin customers requesting home tours and writing offers, dropped 7 percent from May and now sits at 88 in June. For the month of June, the number of Redfin customers requesting tours dropped by 6 percent from May. There was also a 7 percent drop in the amount of people who wrote home-purchase offers in June than one year prior and a 5.6 percent month-over-month drop in offer-writing.
With an increased drop in demand, sales in August are expected to slow. However, it may not feel like it, as demand is still outpacing supply across the country. Denver was the U.S. metro that experienced the largest decline in year-over-year demand as its Demand Index fell 54.7 percent. Meanwhile, Baltimore saw the largest annual increase in demand with a 20.7 increase in June.
On a month-over-month basis, Atlanta had the largest drop as its Demand Index fell 47.1 percent while San Francisco experienced the largest month-over-month gain as it rose 45 percent.
For the full breakdown and to view accompanying metro-specific charts, follow the link below.