Market Overview

The Redfin Housing Demand Index Continued Record Climb in January

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The Redfin Housing Demand Index increased 6.5 percent from the previous
month to a seasonally adjusted level of 130 in January, according to
Redfin (www.redfin.com),
the next-generation real estate brokerage.

This marks the highest level recorded since January 2013, the first
month measured by the index. The Redfin Housing Demand Index is based on
thousands of Redfin customers requesting home tours and writing offers.
A level of 100 represents the historical average for the three-year
period from January 2013 to December 2015.

"Soaring stock markets, still low mortgage rates and a steady economy
bolstered homebuyers at the start of 2017," said Redfin chief economist
Nela Richardson. "Homebuyers were not just window shopping, they were
serious about making offers and getting to the closing table. However,
this uptick in homebuyer enthusiasm won't guarantee strong sales in the
coming months. With pending home sales down across the country in
January despite strong demand, the lack of supply is a formidable foe
for buyers this year."

Compared to December, the seasonally adjusted increase in buyers
requesting tours was up 3.2 percent in January, while the seasonally
adjusted change in buyers writing offers was up 13.0 percent.

Homebuyer demand in January was far above the recent historical average.
Compared to January 2016, homebuyer demand was up 22.9 percent, led by a
25.9 percent year-over-year increase in homebuyers requesting tours and
an 18.0 percent increase in buyers making offers.

The start of 2017 has had a notably limited selection for homebuyers,
who saw 13.4 percent fewer homes on the market in January than the
previous year, with 4.0 percent fewer new listings.

Baltimore Buyers See Tax Breaks

The Baltimore-area Demand Index level was at 157 in January, up 63.8
percent compared to this time last year.

"Most of the offers my homebuying customers have made of late have been
part of a multiple offer situation, and the homes I've listed have found
buyers as quickly as two days, and most within two weeks," said Redfin
real estate agent Chris Calabretta.

"Many builders are taking properties that need updating and renovating
them to a high-end level while keeping the original charm, and then
selling them for between $250,000 and $500,000, depending on which
neighborhood. Developers are renovating to a historical standard
required to get what is known as a CHAP credit, which gives buyers a 10
year discounted tax incentive. And depending on the level of renovation,
some properties are instead coming with a five-year new construction tax
credit. These types of properties are the most popular when they hit the
market," said Calabretta.

And high prices in nearby Washington, D.C. are having an effect on the
Baltimore housing market. "A lot of buyers realize that they can take
the MARC commuter train from Baltimore and be in D.C. in an hour. More
people are now acting on it. Since buying a house here is half the cost,
Baltimore is where they're looking," said Redfin real estate agent Lynn
Ikle.

Boston Market Already Red-Hot

The Boston-area Demand Index was at 174 in January, up 34.7 percent
compared to this time last year.

"The market has been unusually busy," said Redfin real estate agent
Sandy Rosen. "The weather has been mild and some buyers are worried
about rates going up, so they'd prefer to buy now rather than later.
We're also seeing buyers who expect that because it's still the winter,
prices are lower and there's less competition if they can just find a
home soon.

"Unfortunately, that's not actually the case," said Rosen. "It's busy
enough that prices aren't especially lower. Instead, sellers are putting
their homes on the market at intentionally low prices, drawing 10 or 15
offers, and then choosing from among the highest bidders. A home that
looks like an incredible deal when it first lists almost always sells
for far above the list price."

For additional national and local data and analysis, including
metro-level charts and insights from real estate agents, please visit: https://www.redfin.com/blog/2017/02/the-redfin-housing-demand-index-continued-record-climb-in-january.html.

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About Redfin Corporation

Redfin (www.redfin.com)
is the next-generation real estate brokerage, combining its own
full-service agents with modern technology to redefine real estate in
the consumer's favor. Founded by software engineers, Redfin has the
country's #1 brokerage website and offers a host of online tools to
consumers, including the Redfin
Estimate
, the highly accurate automated home-value estimate.
Homebuyers and sellers enjoy a full-service, technology-powered
experience from Redfin real estate agents, while saving thousands in
commissions. Redfin serves more than 80 major metro areas across the
U.S. The company has closed more than $31 billion in home sales and
saved customers more than $335 million in fees through 2015.

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
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