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Homebuying Demand Rises For Eighth Straight Week

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Redfin said homebuying for the week ending on June 7 was 25% higher than it was pre-COVID-19 in January and February. This marks the eighth straight week of rising demand.

While the lack of available inventory hinders home sales, sellers are beginning to return to the market. The report says that after falling to 21% below last year’s level during the week of May 25-31, new listings were just 15% below last year’s level.

Redfin forecasts for growing sales, with mortgage purchase applications up 7% annually in the last week of May and up 13% for the first week of June.

"It has been a speed bump," said Alec Traub, a Los Angeles-based team manager for Redfin.

Hazel Shakur

, a Redfin Maryland agent, reports that "between the virus and now the protests, folks are not batting an eyelash." What's driving demand is low rates and, now, easing credit.

Redfin added that asking prices were 9.9% annually for the week of June 1-7, compared to 7.9% for the week prior and 3.9% in January and February.

Sales prices for the first week of June are up 3.1% year-over-year, an improvement from 1.3% in May when offers from late March and April were still closing. The percentage of newly listed homes accepting an offer within 14 days of their debut increased from 42% in May to 47% in the first week of June.

Redfin also said many buyers that are relocating are pursuing suburbs or smaller, more affordable cities.

"It's odd, because I've got two different sellers moving to Oklahoma, both for jobs," said Shakur. "That big migration we're all expecting, it's beginning to happen. People are now moving more to the interior of the country. I also have a lot of clients who are retiring and moving down south to more tax-favorable states."

In April and May 2020, 27% of Redfin users search outside of their metropolitan area—a slight increase from last year’s 25%.

 

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.
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