Early-Stage Homebuying Demand Jumps to Its Highest Level in 15 Months Despite High Mortgage Rates

Written by Posted On Thursday, 21 November 2024 06:27

The number of homebuyers and sellers contacting Redfin agents has jumped over the last week, with Redfin’s Homebuyer Demand Index posting its biggest year-over-year increase since early 2022

Homebuyers are jumping into the market now that the election has passed and the Fed has cut interest rates for the second time in a row. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

The number of people contacting Redfin agents for help buying and/or selling their home is up by double digits from a year ago. Redfin’s Homebuyer Demand Index–a seasonally adjusted measure of those contacts–rose 17% year over year to its highest level since August 2023, continuing an increase that started immediately after the election. That 17% increase is the biggest since January 2022. It’s worth noting that Redfin is comparing to a period in 2023 when high mortgage rates were pushing down demand. Today’s weekly average mortgage rate is 6.78%, compared to 7.44% a year ago. Mortgage-purchase applications are up 2% week over week, and pending home sales rose 4.5% year over year during the four weeks ending November 17, in line with the increases seen over the last month and a half.

“The burst of buyers and sellers jumping into the market is the result of pent-up demand from people who were waiting for the election to pass, and for the Fed to cut interest rates a second time,” said Redfin Economic Research Lead Chen Zhao. “Even though mortgage rates have been rising since both of those things happened, house hunters who had pressed pause are jumping back in. Now we’re keeping a close eye on whether this is a short post-election boom, or if it translates into a steady improvement in pending sales.”

New listings rose marginally (0.4%) year over year, and the total number of homes for sale is up 11.8%.

“The market is moving surprisingly quickly right now, given that rates are fairly high and we’re well into fall, when buyers and sellers are typically winding down for the holidays,” said Meme Loggins, a Redfin Premier agent in Portland, OR. “Some homebuyers are still having trouble getting over the psychological barrier of high mortgage rates, but plenty others are accepting that rates aren’t coming down anytime soon and taking out conventional or FHA loans. I’m advising buyers who can afford today’s high costs to move forward because prices are lower in this area than they were a year ago, and they’re likely to shoot back up soon as competition heats up. And sellers should consider listing now, because there are serious buyers out there–especially for desirable homes.”

For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

Indicators of homebuying demand and activity

 

Value (if applicable)

Recent change

Year-over-year change

Source

Daily average 30-year fixed mortgage rate

7.05% (Nov. 20)

Near highest level since July, but down from 7.13% 2 weeks earlier

Down from 7.37%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

6.78% (week ending Nov. 14)

Near highest level since July

Down from 7.44%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Up 2% from a week earlier (as of week ending Nov. 15)

Down 1%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Highest level since August 2023

(as of week ending Nov. 17)

Up 17%

 

Biggest increase in nearly 3 years

Redfin Homebuyer Demand Index a measure of tours and other homebuying services from Redfin agents

Touring activity

 

Down 3% from the start of the year (as of Nov. 16)

 

At this time last year, it was down 19% from the start of 2023

ShowingTime, a home touring technology company

Google searches for “home for sale”

 

Up 15% from a month earlier (as of Nov. 18)

Unchanged

 

Google Trends

Key housing-market data

U.S. highlights: Four weeks ending Nov. 17, 2024

Redfin’s national metrics include data from 400+ U.S. metro areas and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.

 

Four weeks ending Nov. 17, 2024

Year-over-year change

Notes

Median sale price

$387,475

6.4%

Biggest increase since Oct. 2022

Median asking price

$389,173

4.6%

 

Median monthly mortgage payment

$2,593 at a 6.78% mortgage rate

0.5%

 

Pending sales

72,034

4.5%

 

New listings

76,114

0.4%

 

Active listings

1,015,975

11.8%

Smallest increase since March

Months of supply

4

+0.3 pts.

4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions.

Share of homes off market in two weeks

30.1%

Down from 35%

 

Median days on market

42

+7 days

 

Share of homes sold above list price

25.1%

Down from 28%

 

Average sale-to-list price ratio

98.6%

-0.2 pts.

 

Metro-level highlights: Four weeks ending Nov. 17, 2024

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

 

Metros with biggest year-over-year increases

Metros with biggest year-over-year decreases

Notes

Median sale price

Cleveland (13.7%)

Newark, NJ (12.5%)

Milwaukee (12.4%)

Detroit (11.8%)

Miami (11.5%)

Atlanta (-0.8%)

San Antonio (-0.3%)

 

 

Declined in 2 metros

Pending sales

San Jose, CA (17.8%)

Dallas (17.4%)

New York (15.5%)

Portland, OR (14.9%)

Fort Worth, TX (14.1%)

 

Miami (-14.3%)

Fort Lauderdale, FL (-12.8%)

West Palm Beach, FL (-11.7%)

Atlanta (-5.7%)

Houston (-5.3%)

Increased in 38 metros

 

 

New listings

Washington, D.C. (15.3%)

San Francisco (15.1%)

Seattle (14.3%)

New York (12.8%)

Baltimore (8.3%)

 

 

Austin, TX (-21.4%)

Atlanta (-16.3%)

San Antonio (-15%)

Las Vegas (-13.1%)

Detroit (-9%)

Declined in 20 metros

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-homebuying-demand-jumps

Rate this item
(0 votes)
Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent. You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

https://www.redfin.com

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries