SEATTLE–Homebuyer demand picked back up in July after posting month-over-month declines in May and June, according to new data from Redfin, a real estate brokerage.
The company reported its Redfin Housing Demand Index, based on thousands of Redfin customers requesting home tours and writing offers, increased 5.7% from June to a seasonally adjusted level of 94 in July. The jump in overall demand was driven by an increase in the number of Redfin customers requesting home tours, up 14.3% from June.
“Buyers continue to be persistent when it comes to giving homes a shot, checking out what’s coming on the market despite new inventory being few and far between,” said Redfin chief economist Nela Richardson in a released statement. “But strong tour growth isn’t translating into offer growth, so we’ll likely see a second lackluster month for sales in August.”
The Redfin Housing Demand Index posted a reading of 94 in July. According to the company, that number represents a 5.7% month-over-month increase and a 13.8% year-over-year decline in homebuyer demand. July marked the sixth consecutive month of year-over-year declines in the Demand Index.
The number of Redfin customers requesting home tours grew by 14.3% from June and by 15.7% from last year.
The number of Redfin customers writing offers was down by 1.8% month over month and essentially flat year over year, up 0.5%.
Redfin reported San Diego posted the biggest month-over-month gain in homebuyer demand, up 30.1% in July. Boston posted the largest monthly decrease, with the local Demand Index down 29.8%.
San Francisco saw the biggest annual increase in demand, up 54.8%.
The biggest year-over-year decrease in demand was seen in Oakland, down 57.6%.