SEATTLE--(EON: Enhanced Online News)--The Redfin Housing Demand Index declined 7.3 percent to a seasonally-adjusted level of 94 in November, according to Redfin (www.redfin.com), the next-generation real estate brokerage.
“Now that rates are finally rising, some buyers feel that if they do not buy now, they will not be able to afford a home in the East Bay as prices continue to rise”
The Demand Index is based on thousands of Redfin customers requesting home tours and writing offers. A level of 100 represents the historical average for the three-year period from January 2013 to December 2015.
In November, 7.6 percent fewer homebuyers requested tours compared to October, and 8 percent fewer homebuyers wrote offers. Both numbers are seasonally-adjusted. These declines are in great part a reflection of the lack of available homes to see and make offers on. November marked the eighteenth consecutive month of year-over-year declines in the number of homes for sale.
“Nationally, new listings were at a standstill, as sellers paused to assess market timing,” said Redfin chief economist Nela Richardson. “It took about a month longer for a typical buyer to search for a home and make a successful offer in November than it did for a newly listed home to go under contract. This is the widest margin between time to buy and time to sell that we’ve seen.”
Bucking the Trend, Oakland Saw Pickup in Homebuyer Demand
Demand in Oakland, California, was at a level of 125 in November, up from 99 in October. Oakland saw a 12.5 percent increase in customers requesting tours and a 62.7 percent jump in those writing offers compared to October.
“Now that rates are finally rising, some buyers feel that if they do not buy now, they will not be able to afford a home in the East Bay as prices continue to rise,” said Redfin real estate agent Dylan Masella. “What was supposed to be a slow autumn has turned into a market full of unprecedented activity.”
While the median sale price in nearby San Francisco is $1.1 million, in Oakland it’s a far lower $635,000, according to the latest Redfin Real-Time Housing Market Tracker.
“Over the past few years, a large percentage of our buyers in Oakland and Berkeley have been professionals and couples who rent in San Francisco and started their home searches there,” said Redfin real estate agent Noah Manning. “These buyers found significant competition and very high prices in San Francisco, so they switched their focus to the East Bay, causing Oakland’s market demand to continue to increase.”
Homebuyer demand in San Francisco fell 10.8 percent to 90 in November.
To read the full report, complete with more local and national analysis, and city-by-city charts, please visit: https://www.redfin.com/blog/2016/12/housing-demand-soared-in-oakland-this-november-while-much-of-the-country-saw-dips-due-to-low-supply.html.
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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 highly accurate automated home-value estimate. 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 $31 billion in home sales and saved customers more than $335 million in fees through 2015.
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