More Buyers Touring, Applying for Mortgages

SEATTLE — Redfin’s Homebuyer Demand Index is sitting near its highest level since September 2023, according to a new report from the real estate technology firm Redfin.

Redfin’s Homebuyer Demand Index — a seasonally adjusted measure of tours and other buying services from Redfin agents — is up 7% year over year. Mortgage-purchase applications are up 17% month over month to their highest level since late January.

Pending home sales rose 6.5% from a year earlier during the four weeks ending December 1, on par with the annual increases Redfin has seen over the last two months.

There are a few reasons house hunters are coming out of the woodwork despite high mortgage rates and home prices:

• Many people were waiting for the election to pass before getting serious about buying a home. Redfin saw a burst in early stage homebuying activity, like home tours, immediately after the election, and it has continued.
• Buyers have grown accustomed to elevated mortgage rates, and many have accepted they’re unlikely to come down anytime soon. The current weekly average rate is 6.81%, roughly the middle of the 6% to 7.8% range seen over the last two years.

“The market is strong, with a lot of pent-up demand after a slow summer and early fall,” said Mimi Trieu, a Redfin agent in the Bay Area. “Buyers realized mortgage rates may not drop below 5%, and probably not below 6%, in the near future. They are also noticing there are not many desirable, move-in ready homes for sale that are priced reasonably, so they’re pushing forward and negotiating for good deals. Homes that have been sitting on the market since the summer or early fall are finally selling.”

On the for-sale side, new listings are up 3% year over year. Though that’s a modest increase, it’s the biggest in two months (with the exception of the prior four-week period, when the year-over-year increase was inflated because of Thanksgiving).

Florida data from Redfin:

Metros with biggest year-over-year increase in median sale price:

• Miami (11.5%)

Metros with biggest year-over-year decrease in median sales price:

• Tampa, FL (-1.5%)

Metros with biggest year-over-year increase in pending sales:

• Jacksonville, FL (13.7%)
• Tampa, FL (13.6%)

Metros with biggest year-over-year decrease in pending sales:

• Miami (-11%)
• West Palm Beach, FL (-6.5%)
• Fort Lauderdale, FL (-4.9%)

Metros with biggest year-over-year increase in new listings:

• Jacksonville, FL (11.3%)

Source: Redfin

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