Number of US home tours in October up 0.1% from previous month, home offers up 7.8%, with data suggesting government shutdown affected homebuyer behavior; homebuyer demand likely to drop again in November: Redfin

SEATTLE , November 7, 2013 (press release) – Declining Competition and Low Mortgage Rates Draw Late-Season Homebuyers into the Market, Bucking Typical Seasonal Decline

Redfin (www.redfin.com), the technology-powered real estate brokerage, today issued its Real-Time Demand Pulse, the only report in the industry that analyzes housing market demand based on home tour and offer data. October home tours and offers by Redfin clients were more robust than expected, compared to typical seasonal declines and following September's sharp drop in demand.

Redfin's data in October suggests that the U.S. government shutdown did impact buyer behavior. Some homebuyers paused their search during the government shutdown, but jumped back into the market immediately after it reopened.

The report, which covers 22 top U.S. real estate markets, showed:

  • Redfin customers scheduling home tours increased 0.1% month over month in October 2013, compared to a drop of 3% during the same period in 2012.
  • Offers signed by Redfin customers were up 7.8% month over month in October 2013, in stark contrast to the 3.8% drop during the same period last year.
  • During the government shutdown, tours and offers both declined, with tours down 2.8% and offers down 8.4% in the two-week period starting on October 6. Both metrics rebounded the week after the government reopened, rising 3.4% and 2.4%, respectively.

September 29- November 2 vs. Five Weeks Prior

2012

2013

Home Tours

-3.0%

0.1%

Home Offers

-3.8%

7.8%


"Since mid-September, mortgage rates have done an about-face thanks to the Fed's decision to keep it's stimulus program in place, providing extra incentive for buyers to continue their search," said Redfin economist Ellen Haberle. "Moreover, competition is dropping steadily, which is helping to boost buyers' negotiating power. For buyers who have contended with heavy competition and rising rates and prices in 2013, these changes are a breath of fresh air."

Demand is likely to drop again in November, as Thanksgiving approaches and buyers shift their focus toward holiday preparations.

To access the full report on Redfin's blog, click or paste the following link. http://www.redfin.com/research/reports/real-time-demand-pulse

About this Report
The Redfin Real-Time Demand Pulse is a monthly analysis of thousands of customers touring homes and signing offers in twenty markets across the United States. Redfin is the only major real estate broker storing data in one location about its agent tours and offers, enabling the company to project sales volume for the U.S. without waiting 30 – 45 days for sales to close, or an additional 15 – 30 days for them to be recorded as public record.

About Redfin
Redfin (www.redfin.com) is a technology-powered real estate broker that represents people buying and selling homes. Founded and run by technologists, Redfin has a team of experienced, full-service real estate agents who are advocates, not sales-people, earning customer-satisfaction bonuses, not commissions. Redfin online tools feature all the broker-listed homes for sale, as well as for-sale-by-owner properties that don't pay brokers a commission. The company serves 22 U.S. markets and has closed more than $8 billion in home sales. In 2012, Redfin was named one of The DIGITAL 100: World's Most Valuable Private Tech Companies by Business Insider. Follow us on our blog (blog.redfin.com), Facebook (facebook.com/redfin), Google+ (plus.google.com/+Redfin), LinkedIn (linkedin.com/company/Redfin), and Twitter (@redfin).

SOURCE Redfin


RELATED LINKS
http://www.redfin.com
http://www.blog.redfin.com

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