Wednesday, February 06, 2013

Redfin: "Homebuyer Demand Takes Off in January"

by Calculated Risk on 2/06/2013 12:38:00 PM

This fits with the MBA purchase index released this morning ...

From Redfin: Homebuyer Demand Takes Off in January with Home Offers up 70%, Tours up 58%

• Customers signing offers increased 70.4 percent in January, compared with an increase of 58.5 percent a year earlier.

• Customers requesting home tours were up 57.9 percent in January, compared with an increase of 52.0 percent in 2012.

The increase in homebuyer demand seen in January paired with a nation-wide inventory shortage has created an extreme seller’s market as we head into the spring home-buying and selling season. Particularly in Redfin’s Southern California markets, bidding wars involving thirty or more offers have become increasingly common. With no signs that homebuyer demand will let up any time soon, all eyes are on the nation's homeowners, builders and banks to list their homes for sale, providing some relief from this chaotic market.
Note that demand always picks up in January and Redfin provides a comparison to the increase last year in their markets.

I expect more inventory to come on the market over the next few months (Several potential sellers have told me they plan to list their homes soon since the market has "improved").