The seasonally adjusted number of buyers requesting for tours dropped by 5.5% in March, while those who wrote offers plummeted by 22.8%.
Inventory also continued to tighten. Year-over-year, there were 12.5% fewer homes on the market across the 15 metros in Redfin’s demand index, marking the 22nd consecutive month of year-over-year inventory declines.
“The market is missing its moment because of too-low inventory,” said Redfin Chief Economist Nela Richardson. “Mortgage rates are the lowest they’ve been this year. Meanwhile low unemployment rates and high consumer confidence should create continued momentum in homebuyer demand. But instead, we’re seeing demand cooling when it should be peaking. For this reason, we think the 2017 market will be a late bloomer, with new listings coming on later in the year and sales peaking in the early fall, instead of summer.”
March home sales fastest so far - Redfin
Low inventory biggest challenge - Redfin
Housing demand decreased to a seasonally adjusted level of 108 last month – a 13.9% drop from February, according to Redfin’s Housing Demand Index.