Redfin Reports More Buyers Are Touring Houses, Applying For Mortgages As We Enter 2024’s Home Stretch

The uptick in early-stage homebuying activity immediately after the election is continuing, despite high home prices and mortgage rates

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — Redfin’s Homebuyer Demand Index is sitting near its highest level since September 2023, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Redfin’s Homebuyer Demand Index—a seasonally adjusted measure of tours and other buying services from Redfin agents—is up 7% year over year. Mortgage-purchase applications are up 17% month over month to their highest level since late January.

Pending home sales rose 6.5% from a year earlier during the four weeks ending December 1, on par with the annual increases Redfin has seen over the last two months.

There are a few reasons house hunters are coming out of the woodwork despite high mortgage rates and home prices:

• Many people were waiting for the election to pass before getting serious about buying a home. Redfin saw a burst in early-stage homebuying activity, like home tours, immediately after the election, and it has continued.
• Buyers have grown accustomed to elevated mortgage rates, and many have accepted they’re unlikely to come down anytime soon. The current weekly average rate is 6.81%, roughly the middle of the 6% to 7.8% range seen over the last two years.

“The market is strong, with a lot of pent-up demand after a slow summer and early fall,” said Mimi Trieu, a Redfin Premier agent in the Bay Area. “Buyers realized mortgage rates may not drop below 5%, and probably not below 6%, in the near future. They are also noticing there are not many desirable, move-in ready homes for sale that are priced reasonably, so they’re pushing forward and negotiating for good deals. Homes that have been sitting on the market since the summer or early fall are finally selling.”

On the for-sale side, new listings are up 3% year over year. Though that’s a modest increase, it’s the biggest in two months (with the exception of the prior 4-week period, when the year-over-year increase was inflated because of Thanksgiving).

For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

Leading indicators

Key housing-market data

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-homebuying-demand-tours-rise/

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241205146680/en/

Contact Redfin
Redfin Journalist Services:
Isabelle Novak
press@redfin.com

Source: Redfin

Released December 5, 2024