Tag Archives: Demand

Homebuyer interest diminished somewhat in June, according to Redfin's Real-Time Demand Pulse. According to the brokerage, the number of customers taking tours fell 1.9 percent month-over-month in June, sinking even further than the 1.5 percent drop recorded last year. For the last week of the month, Redfin reported a 2.7 percent decline in tour requests from the prior week (compared to a 2.3 percent decline the same week in 2012). With closed sales typically peaking each year in June, Redfin expects continued monthly declines.

In concurrence with many industry analysts, real estate agents expect price gains to mellow in the near future, according to survey results released by Redfin. Eighty-six percent of agents believe prices will rise over the next few months. However, while a majority of agents expect price gains, a minority expect prices to "rise a lot." The percent of agents who anticipate prices rising "a lot" in coming months fell from 44 percent in the first quarter to just 16 percent in the second quarter, according to Redfin's survey.

An increase in prices itself does not signal a bubble. An unsustainable increase, not supported by other data, however, would.

Zillow expects prices will continue their upward trajectory in the short-run with a 4.1 percent increase over the following 12 months. However, as inventory increases and interest rates rise, "some demand may also ebb," said Stan Humphries, Zillow's chief economist. These predictions prompted the economist to advise, "Enjoy it while it lasts, because the housing market will undoubtedly look very different a few years down the road from how it appears now."

A plurality of prospective homebuyers responding to an industry survey anticipate down payments of less than 15 percent when they purchase a new home. Forty-four percent of respondents anticipate low down payments of no more than 15 percent, while 34 percent foresee paying between 15 and 24 percent of purchase price at closing. Nineteen percent say they will put down more than 25 percent of their home purchase price when the purchase their next home, according to the survey conducted on behalf of LendingTree.

Freddie Mac maintains in its latest U.S. Economic and Housing Market Outlook that rising mortgage rates shouldn't have a significant impact on housing affordability or the recovery for the time being.

According to Redfin, listings increased 4.2 percent in May, adding to April's 6.4 percent growth. While total inventory was still down 22 percent year-over-year in May, that was still an improvement compared to January's 32 percent annual drop. Some markets are already ahead of the curve: Phoenix turned in a 14.1 percent year-over-year increase in May, while Chicago came in 0.4 percent ahead of last year. On the other hand, markets like Los Angeles and Boston still have a ways to go.

Redfin agents reported 69.5 percent of offers written in May faced competition, a decrease from 73.3 percent in April.

To better gauge the future of homeownership and the current shift toward renting, Fannie Mae's National Housing Survey took a look at renter attitudes and preferences in Q3 2012 to get an idea of their aspirations and expectations. According to the findings, the majority of respondents believe renting has its advantages in terms of current finances and stress. However, when asked about control, privacy, security, and financial prospects, the vast majority (64 percent and up across each question) said owning is the better choice.

Markets across the nation can expect to see sales soften in June and July, based on early reports from Redfin agents around the country.