Redfin Reports More Buyers Are Touring Houses, Applying For Mortgages As We Enter 2024’s Home Stretch

Rhea-AI Summary

Redfin reports a significant uptick in early-stage homebuying activity post-election, despite high home prices and mortgage rates. The Homebuyer Demand Index is near its highest level since September 2023, up 7% year over year. Mortgage-purchase applications rose 17% month over month to their highest level since late January. Pending home sales increased by 6.5% from the previous year during the four weeks ending December 1. The average 30-year fixed mortgage rate sits at 6.81%, a drop from recent highs. New listings increased by 3% year over year, the biggest rise in two months. The median sale price of homes is $383,460, up 6.1% year over year. However, touring activity is down 36% from the start of the year. Key metro areas like Detroit and Newark saw the highest year-over-year median sale price increases, while Tampa and Dallas saw declines. For more details, visit Redfin's full report.

Positive

• Homebuyer Demand Index up 7% year over year.
• Mortgage-purchase applications up 17% month over month.
• Pending home sales up 6.5% year over year.
• New listings up 3% year over year.
• Median sale price up 6.1% year over year.

Negative

• Touring activity down 36% from the start of the year.
• Median days on market increased by 7 days.
• Share of homes sold above list price decreased to 24.6%.

Insights

Market Research Analyst

The latest housing market data reveals notable shifts in buyer behavior and market dynamics. The 7% year-over-year increase in Redfin's Homebuyer Demand Index, coupled with mortgage applications reaching their highest level since January, signals growing market resilience. The 6.5% rise in pending home sales and 3% increase in new listings indicate improving market conditions. San Jose leads pending sales growth at 20.1%, while Detroit shows the strongest price appreciation at 14%. This data suggests buyers are adapting to the "new normal" of higher rates, with the current 6.81% rate being viewed as acceptable compared to recent peaks. The $383,460 median sale price represents a 6.1% year-over-year increase, reflecting sustained market strength despite affordability challenges.

Financial Analyst

The housing market's resilience amid high rates presents significant implications for Redfin's business model and revenue potential. The uptick in homebuyer demand and touring activity suggests improved transaction volume prospects for 2024. The 11.1% increase in active listings, while the smallest since March, indicates a gradually balancing market that could support more transactions. The average sale-to-list price ratio of 98.5% shows maintained pricing power despite market challenges. For Redfin, this environment could translate to stronger commission revenues, particularly in high-performing markets like San Jose and Detroit. The post-election surge in activity and adaptation to higher rates suggests a potentially stronger transaction environment heading into 2024.

The uptick in early-stage homebuying activity immediately after the election is continuing, despite high home prices and mortgage rates

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — Redfin’s Homebuyer Demand Index is sitting near its highest level since September 2023, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

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 Premier 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 4-week period, when the year-over-year increase was inflated because of Thanksgiving).

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

Leading indicators

Indicators of homebuying demand and activity
	Value (if applicable)	Recent change	Year-over-year change	Source
Daily average 30-year fixed mortgage rate	6.86% (Dec. 4)	Down from 7.08% two weeks earlier	Down from 7.11%	Mortgage News Daily
Weekly average 30-year fixed mortgage rate	6.81% (week ending Nov. 27)	Highest level since July	Down from 7.22%	Freddie Mac
Mortgage-purchase applications (seasonally adjusted)		Up 6% from a week earlier (as of week ending Nov. 29)	Down 21%	Mortgage Bankers Association
Redfin Homebuyer Demand Index (seasonally adjusted)		Up 4% from a month earlier (as of week ending Dec. 1)	Up 7%	Redfin Homebuyer Demand Index a measure of tours and other homebuying services from Redfin agents
Touring activity		Down 36% from the start of the year (as of Dec. 1)	At this time last year, it was down 25% from the start of 2023	ShowingTime, a home touring technology company
Google searches for “home for sale”		Unchanged from a month earlier (as of Dec. 1)	Unchanged	Google Trends

Key housing-market data

U.S. highlights: Four weeks ending Dec. 1, 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 Dec. 1, 2024	Year-over-year change	Notes
Median sale price	$383,460	6.1%
Median asking price	$382,723	5.1%
Median monthly mortgage payment	$2,556 at a 6.81% mortgage rate	3.3%	Lowest level in 2 months
Pending sales	66,396	6.5%
New listings	65,322	3%
Active listings	991,732	11.1%	Smallest increase since March
Months of supply	4.3	+0.2 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	28.6%	Down from 31%
Median days on market	42	+7 days
Share of homes sold above list price	24.6%	Down from 27%
Average sale-to-list price ratio	98.5%	-0.2 pts.

Metro-level highlights: Four weeks ending Dec. 1, 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	Detroit (14%) Newark, NJ (13%) Warren, MI (12.1%) Miami (11.5%) Montgomery County, PA (11.1%)	Tampa, FL (-1.5%) Dallas (-0.5%) San Antonio (-0.4%)	Declined in 3 metros
Pending sales	San Jose, CA (20.1%) Cincinnati (15.9%) San Francisco (15.5%) Jacksonville, FL (13.7%) Tampa, FL (13.6%)	Miami (-11%) West Palm Beach, FL (-6.5%) Fort Lauderdale, FL (-4.9%) Houston (-3.3%) Atlanta (-1.8%)	Declined in 7 metros
New listings	Washington, D.C. (14.6%) Philadelphia (13.3%) Baltimore (11.8%) Jacksonville, FL (11.3%) Phoenix (9.5%)	San Antonio (-19.8%) Austin, TX (-18.7%) Portland, OR (-10.3) Atlanta (-9.6%) Newark, NJ (-8.3%)	Declined in 16 metros

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

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/20241205146680/en/

Contact Redfin

Redfin Journalist Services:

Isabelle Novak

press@redfin.com

Source: Redfin

FAQ

What is the recent performance of Redfin's Homebuyer Demand Index (RDFN)?

Redfin's Homebuyer Demand Index is near its highest level since September 2023, up 7% year over year.

How have mortgage-purchase applications changed recently for RDFN?

Mortgage-purchase applications are up 17% month over month to their highest level since late January.

What is the current average 30-year fixed mortgage rate reported by RDFN?

The current average 30-year fixed mortgage rate is 6.81%, down from recent highs.

How have pending home sales changed for RDFN?

Pending home sales increased by 6.5% from the previous year during the four weeks ending December 1.

What is the year-over-year change in new listings according to RDFN?

New listings increased by 3% year over year.