Wednesday
November 26, 2014

Survey: Homebuyer Demand Bucking Seasonal Decline

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Survey: Homebuyer Demand Bucking Seasonal Decline

Late-season home buyers are being drawn into the market, with buyer demand outperforming typical seasonal patterns, according to the real estate brokerage Redfin’s Demand Pulse, which analyzes the housing market based on home tour and offer data in 22 top real estate markets. 

Home tour and offers in October appeared “more robust than expected compared to typical seasonal declines,” Redfin notes in its report. Offers signed by Redfin customers rose 7.8 percent month over month in October. For comparison, in October 2012, offers had dropped 3.8 percent.

"Since mid-September, mortgage rates have done an about-face thanks to the Fed's decision to keep its stimulus program in place, providing extra incentive for buyers to continue their search," says Ellen Haberle, a Redfin economist. "Moreover, competition is dropping steadily, which is helping to boost buyers’ negotiating power. For buyers who have contended with heavy competition and rising rates and prices in 2013, these changes are a breath of fresh air."

The report showed the government shutdown did prompt many home buyers to halt their searches. But after the government reopened, buyers started to re-emerge. 

During the two-week government shutdown, tours declined 2.8 percent and offers fell 8.4 percent. After the government reopened, tours rebounded 3.4 percent while offers rose 2.4 percent.

Source: Redfin

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