Consumer Uncertainty Impacts Demand in September

Homebuyer interest picked up slightly in September, but the number of customers willing to pull the trigger on purchasing declined substantially, ""Redfin"":http://www.redfin.com/ reported in its latest ""Real-Time Demand Pulse"":http://www.redfin.com/research/reports/2013/home-buyer-demand-september-2013.html.

The number of buyers requesting home tours from Redfin agents rose 0.2 percent from August, turning up from a steady downward spiral that started in May. Compared to the same period last year, home tours rose 3.5 percent.

In the last week, however, tour requests slipped 3.1 percent, indicating uncertainty in the days leading up to Washington's shutdown.

Meanwhile, the number of homebuyers submitting offers fell 11.8 percent, the largest monthly drop Redfin has recorded all year and a sharp turn from the 4.5 percent improvement recorded in September 2012.

""September's big drop in offers is in large part due to a 31 percent plunge they took in the first week, reflecting significantly reduced demand during the Labor Day vacation and back-to-school,"" said Redfin analyst Rachel Musiker, who noted that offers spiked back up the following week.

Offers fell 0.3 percent in September's last week despite the slight drop in mortgage rates precipitated by the Federal Reserve's announcement that it still has no set date to taper its bond-buying program.

Given the country's current economic and governmental situation, it comes as no surprise that the autumn season so far has been characterized by uncertainty, Redfin says.

""Last year homebuyers recognized that home prices were bottoming out, and with record-low interest rates and signs that the recession was ending, consumer confidence was high,"" said Aaron Drucker, New York market manager for the brokerage. ""Today our clients are concerned about fluctuating mortgage rates as well as the government shutdown and debt ceiling battle.

""When people feel uncertain about their wealth and the economy, buying a home falls to the bottom of their to-do list.""