Housing demand dropped 14.1% month over month to 110 in February, according to the latest Index report released this week from the Seattle based online real estate brokerage, Redfin.
Redfin stated that this represents the lowest level of homebuyer demand in 11 months and the largest month-over-month decline on record for the Demand Index, going back to January 2013.
Redfin’s head of analytics, Pete Ziemkiewicz said;
“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. 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.”
The Redfin report showed that the seasonally adjusted number of buyers requesting home tours from January to February was down by 12.4%, and the number of buyers making offers dropped 18.0%.
Year over year, the Housing Demand Index dropped 6.5% from February 2017. The number of buyers requesting home tours was up 2.9%, while the number making offers declined 20.1%.
February marked 33 consecutive months of declining home supply across the 15 metros covered by the Demand Index, with 13.6% fewer homes for sale than a year earlier. The inventory shortage, paired with strong demand, has driven rapid home-price appreciation.