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

Rhea-AI Summary

Redfin's Homebuyer Demand Index has surged 17% year-over-year, marking its highest level since August 2023 and the biggest increase since January 2022. This jump in early-stage homebuying demand comes despite high mortgage rates, currently at 6.78% compared to 7.44% a year ago. Pending home sales rose 4.5% year-over-year, while new listings increased marginally by 0.4%. The total number of homes for sale is up 11.8%. The median sale price reached $387,475, showing a 6.4% increase, the largest since October 2022.

Positive

• Homebuyer Demand Index rose 17% YoY, highest since August 2023
• Pending home sales increased 4.5% YoY
• Median sale price up 6.4% to $387,475
• Active listings increased 11.8%
• Mortgage rates decreased to 6.78% from 7.44% YoY

Negative

• Only 0.4% increase in new listings YoY
• Share of homes sold above list price decreased to 25.1% from 28% YoY
• Median days on market increased by 7 days
• Mortgage-purchase applications down 1% YoY

Insights

Market Research Analyst

The surge in Redfin's Homebuyer Demand Index signals a notable shift in market sentiment, with the 17% year-over-year increase marking the largest jump since January 2022. The 6.4% rise in median sale prices to $387,475 represents the biggest increase since October 2022, indicating strengthening market conditions despite elevated mortgage rates at 6.78%.

Key metrics show a resilient housing market: pending sales up 4.5% year-over-year, active listings increasing 11.8% and new listings stabilizing with a slight 0.4% uptick. The post-election surge in buyer activity, combined with two consecutive Fed rate cuts, suggests a potential market momentum shift. However, the 25.1% share of homes sold above list price, down from 28% last year, indicates buyers still maintain some negotiating power.

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

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — 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

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

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, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241121487099/en/

Contact Redfin

Redfin Journalist Services:

Tana Kelley

press@redfin.com

Source: Redfin

FAQ

What is the current Redfin (RDFN) Homebuyer Demand Index showing?

Redfin's Homebuyer Demand Index rose 17% year-over-year to its highest level since August 2023, marking the biggest increase since January 2022.

What is the current mortgage rate according to Redfin's November 2023 report?

The weekly average mortgage rate is 6.78%, down from 7.44% a year ago.

How much did pending home sales increase according to Redfin (RDFN)?

Pending home sales rose 4.5% year-over-year during the four weeks ending November 17.

What is the current median home sale price reported by Redfin (RDFN)?

The median sale price is $387,475, showing a 6.4% increase year-over-year.