SEATTLE, June 26, 2018 /PRNewswire/ -- (NASDAQ: RDFN) — The Redfin Housing Demand Index increased 7.4 percent month over month to 116 in May, according to Redfin (www.redfin.com), the next-generation real estate brokerage. The rise was driven by a 6.3 percent increase in the number of homebuyers requesting tours, and a 9.7 percent increase in the number making offers on homes from April to May.
The Demand Index is based on thousands of Redfin customers requesting home tours and writing offers. The Demand Index is adjusted for Redfin's market share growth. A level of 100 represents the historical average for the three-year period from January 2013 to December 2015.
Across the 15 metros covered by the Demand Index, this is the second-straight month new listings have increased. There were 6.6 percent more newly listed homes for sale in April compared to the same time last year, and 3.6 percent more new listings in May, compared to May 2017. Demand is still outstripping supply, however, and that is why total inventory is still decreasing. The total number of homes for sale was down 3.3 percent year over year in May.
Despite the Demand Index's rebound from April to May, demand still appears lower than it was at this time last year. The Demand index was 7.5 percent lower in May 2018 than it was in May 2017. The same number of people were requesting home tours, but the number making offers fell 16.7 percent year over year. Again, this is an indication of a dearth of homes to make offers on, as opposed to consumers' desire to buy.
"People listing their homes for sale in higher numbers this April and May is good news for buyers, and good news for home sales," said Redfin head of analytics Pete Ziemkiewicz. "But it's still not enough to satisfy buyer demand, which means price increases will likely continue."
To read the full report, including metro-level demand charts, please visit: https://www.redfin.com/blog/2018/06/redfin-housing-demand-index-up-7-in-may.html
Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, subscribe here. To view Redfin's press center, click here.
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Redfin Journalist Services: Jon Whitely, 206-588-6863, firstname.lastname@example.org