Homebuyer Demand Softens in June with Tours Down 2%, Offers Down 5% in Redfin Real-Time Demand Pulse Rising Interest Rates Likely Deterring New Homebuyers from Entering the Market

SEATTLE, July 3, 2013 /PRNewswire/ -- Redfin (www.redfin.com), the technology-powered real estate brokerage, today issued its Real-Time Demand Pulse, the only report in the industry that analyzes home tour and offer data. Although Redfin's business continues to grow year over year, the number of Redfin customers touring homes and making offers dipped in both May and June this year, falling more than they did during same period last year.

The most likely reason for the decrease in demand is a sudden spike in interest rates in June. Redfin is seeing two kinds of reactions among homebuyers. The first group consists of homebuyers just getting started in the process of purchasing a home. This group seemed to step back, which accounts for the decline in tours and offers in the first few weeks of June. The second group of buyers, already further along in the homebuying process, tended to accelerate in an effort to lock in a still historically low rate. As a result, offers were up by 1.2 percent in the final week of June.

The report showed:

  • The number of customers touring homes fell 1.9% from May to June, compared to a 1.5% increase between May and June in 2012.
  • Home offers decreased 5.0% from May to June, a slightly larger decline than last year's 3.2% drop.
  • During the last week of June, home tours were down 2.7% week over week, compared to a 2.3% increase in the last week of June 2012.
  • In the last week of June, home offers increased 1.2% week over week, compared to a 2.3% week-over-week increase during the same period last year.

May 5 – June 1 Vs. Four Weeks Prior

2012

2013

Home Tours

1.5%

-1.9%

Home Offers

-3.2%

-5.0%

To access the full report on Redfin's blog, click or paste the following link. http://www.redfin.com/research/reports/real-time-demand-pulse

About this Report

The Redfin Real-Time Demand Pulse is a monthly analysis of thousands of customers touring homes and signing offers in twenty markets across the United States. Redfin is the only major real estate broker storing data in one location about its agent tours and offers, enabling the company to project sales volume for the U.S. without waiting 30 – 45 days for sales to close, or an additional 15 – 30 days for them to be recorded as public record.

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate broker that represents people buying and selling homes. Founded and run by technologists, Redfin has a team of experienced, full-service real estate agents who are advocates, not sales-people, earning customer-satisfaction bonuses, not commissions. Redfin's online tools feature all the broker-listed homes for sale, as well as for-sale-by-owner properties that don't pay brokers a commission. The company serves 22 U.S. markets and has closed more than $8 billion in home sales. In 2012, Redfin was named one of The DIGITAL 100: World's Most Valuable Private Tech Companies by Business Insider. Follow us on our blog (blog.redfin.com), Twitter (@redfin), and Facebook (facebook.com/redfin), Redfin Collections (www.redfin.com/collections), and on our mobile apps (www.redfin.com/mobile). 

SOURCE Redfin Corporation



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