Market Overview

Redfin Housing Demand Index Ticks Back up as Prime Selling Season Commences

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The
Redfin Housing Demand Index
increased 9.2 percent from March to a
seasonally adjusted level of 121 in April, according to Redfin (www.redfin.com),
the next-generation real estate brokerage.

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.

Although it has remained above its historical average all year, the
Demand Index has shown strong variability, steadily decreasing from
January to March before picking back up in April.

Compared to March, the seasonally adjusted number of buyers requesting
tours was up 12.1 percent in April, and the seasonally adjusted number
of buyers writing offers was up 6.9 percent. The growth in demand is in
stark contrast with the ongoing shortage of inventory. Across the 15
metros covered by the Demand Index, there were 13.1 percent fewer homes
for sale than the previous March, marking the 23rd consecutive month of
year-over-year inventory declines.

Demand has been moving in fits and starts over the last six months, but
is still generally above the 2013-2015 average activity level. With
prices exceeding their 2006 peak and inventory at the lowest point in
recent years, the question becomes whether this adverse environment will
start to cool the market.

"We know two things heading into the summer selling season. One, home
prices continue to leap forward. Two, homebuyers continue to jump into
the market," said Redfin chief economist Nela Richardson. "A pop of new
listings only encourages more homebuyers to barge their way into this
crowded and competitive, low-inventory market in order to take advantage
of still-low mortgage rates. For these reasons, we expect prices to
continue to grow above their three-year average for the remainder of the
year."

Seattle on Track to Become the Metro with the Least Inventory

Seattle is currently the third-most constrained for inventory, following
Oakland and San Francisco, but has the largest population of the three
metros. Seattle posted the largest year-over-year decrease in inventory,
down 35 percent from last April. In the same period, the number of
Redfin customers making offers climbed by 36.9 percent, an indication
that the market is more competitive for buyers this year than it was
last year.

"There's no indication that this market is going to see a drastic
increase in supply or a drop in demand, so waiting isn't an option for a
serious buyer," said Redfin Seattle agent Kyle Moss. "People intent on
purchasing this season should be discerning and focus on the one or two
criteria that are most important to them, like commute time and/or
schools. From there, carve out a list of homes that meet your
qualifications and work alongside an agent who has experience winning
offers in competitive situations to build and execute a competitive
strategy that fits your budget."

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/2017/05/redfin-housing-demand-index-ticks-back-up-as-prime-selling-season-commences.html

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
Data Center
. To be added to Redfin's press release distribution
list, subscribe
here
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