Market Overview

Redfin Housing Demand Index Dips from January's Record High

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The Redfin Housing Demand Index decreased 8.5 percent from January's
record high, to a seasonally adjusted level of 118 in February,
according to Redfin (www.redfin.com),
the next-generation real estate brokerage.

Despite the dip from the previous month, this was the strongest February
for homebuyer demand since at least 2013, the first year measured by the
index. The 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.

Compared to January, the seasonally adjusted number of buyers requesting
tours was down 8.2 percent in February, while the seasonally adjusted
number of buyers writing offers was down 7.7 percent.

"The only factor holding back sales this spring is supply," said Redfin
chief economist Nela Richardson. "Limited inventory, particularly for
starter homes, has put a crimp in the 2017 market. We expect to see more
listings hit the market this spring, but there will still not be enough
inventory to match homebuyer demand."

While lower than January's all-time high, homebuyer demand in February
remained well above levels seen around this time last year. Demand was
up 20.0 percent compared to the previous February, led by a 25.7 percent
year-over-year increase in homebuyers requesting tours and an 11.9
percent increase in buyers making offers.

February continued a trend of limited selection for homebuyers, who saw
7.2 percent fewer new listings hit the market, and 13.9 percent fewer
homes on the market overall than the previous February.

Denver Buyers Out in Full Force Despite Historically Limited Selection

The Denver-area Demand Index was at 166 in February, up 100.4 percent
compared to the same time last year. Demand was strong despite inventory
30.7 percent lower than this time last year.

"The Denver metro is seeing incredibly limited selection, with the
number of homes for sale down to its lowest level in over 30 years,"
said Redfin real estate agent Corey Keach. "But that hasn't stopped
buyers, from whom there is as much, if not more, interest than last
year. Add that up, and you have a lot of pressure on the market, with
multiple offers basically an expectation, particularly for those
single-family homes in price ranges below $500,000. And it's rare for a
non-cash buyer to win any home under $300,000."

"Homes in higher price points are also seeing strong competition, and
even some $1 million and $2 million dollar homes in Boulder are seeing
multiple offers. Competition at that price point used to be rare here,
which shows just how hot the market is."

Redfin real estate agents also noted that the problem of limited choice
of homes has been worsened by the influx of residents to the Denver
area, which is experiencing strong economic growth. With very few
residents leaving, the metro's population is outpacing its housing
supply.

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/2017/03/redfin-housing-demand-index-dips-from-januarys-record-high.html

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About Redfin

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 automated home-value estimate with the industry's
lowest published error rate. 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
$40 billion in home sales through 2016.

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
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