Market Overview

Redfin Housing Demand Index Virtually Flat from July to August Due to Continued Inventory Shortage

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The number of Redfin customers touring and writing offers was
basically even from July to August, but increased year over year

(NASDAQ:RDFN) — The Redfin Housing Demand Index remained
virtually flat
, up slightly from 126 in July to 127 in August,
according to Redfin (www.redfin.com),
the next-generation real estate brokerage. Still, the Demand Index
increased 27.7 percent year over year. The Demand Index is adjusted for
Redfin's market share growth.

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.

Across the 15 metros covered by the Demand Index, there were 13.9
percent fewer homes for sale in August than there were a year prior, and
there was a 2.7 percent decline in new listings. August marked the 27th
consecutive month of year-over-year inventory declines in these markets.

"High consumer confidence and low interest rates have powered homebuyer
demand, but too-low inventory has constrained home sales all year," said
Redfin chief economist Nela Richardson. "The Federal Reserve is now
setting the stage for a slow, steady increase in mortgage rates in
October by beginning to sell its mortgage portfolio. Fall buyers are
likely to face slightly higher financing costs in addition to strong
price growth."

The seasonally adjusted number of buyers requesting home tours and
writing offers remained flat from July to August, decreasing 0.8 percent
and increasing 0.1 percent respectively. Compared to last year, 42.3
percent more buyers requested tours in August and 8.2 percent more wrote
offers.

At the metro level, Oakland had the largest Demand Index increase in
August, up 29 percent from July and 43 percent year over year. Inventory
was down 30 percent year over year and new listings fell 5.3 percent.

"August has traditionally been one of the slowest months in Oakland for
homebuyer activity as people go on vacation and finish up their family
activities before the kids head back to school," said Redfin Oakland
agent Tom Hendershot. "This year, August demand has really ramped up
compared to July, and we expect September to be a very active month as
long as more new inventory hits the market."

To read the full report, including metro-level demand data and charts,
please visit: https://www.redfin.com/blog/2017/09/redfin-housing-demand-index-virtually-flat-from-july-to-august-due-to-continued-inventory-shortage.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 for listed homes. 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 $50 billion in home sales.

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
. To view Redfin's press center, click
here
.

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