Skip to main content

Will Tight Inventory Limit Q2 Home Sales?

Phil Hall
Mar 30, 2017
House for sale

Homebuyer demand remains strong, but there are warning signs that this may weaken in the second quarter, according to new data from Redfin.
 
February’s Redfin Housing Demand Index saw an 8.5 percent drop from January’s record high level to a seasonally adjusted level of 118. However, this was still the strongest February for homebuyer demand since 2013, the first year measured by the index. But on the flip side, the seasonally adjusted number of buyers requesting tours was down 8.2 percent in February, while the seasonally adjusted number of buyers writing offers fell by 7.7 percent.
 
Although February’s homebuyer demand level was up 20 percent on a year-over-year measurement, tight inventory created continued problems. Last month saw 7.2 percent fewer new listings hit the market, and there were 13.9 percent fewer homes on the market overall than in February 2016.
 
“The only factor holding back sales this spring is supply,” said Redfin Chief Economist Nela Richardson. “Limited inventory, particularly for starter homes, has put a crimp in the 2017 market. We expect to see more listings hit the market this spring, but there will still not be enough inventory to match homebuyer demand.”
Angel Oak Mortgage Announces Initial Public Offering

Angel Oak Mortgage announced its initial public offering of 7,200,000 shares of its common stock at $19 per share.

Industry News
Jun 17, 2021
Mortgage Apps Rebound After Three Consecutive Weeks Of Declines

The Mortgage Bankers Association reported the first increase in mortgage applications after a three consecutive weeks on declines.

Industry News
Jun 17, 2021
CFPB New Rule Prevents Predatory Lending To Military Service Members

The CFPB stipulates its authority to examine supervised financial institutions for risk to active duty servicemembers and their dependents.

Industry News
Jun 16, 2021
Inventory Begins A Slow Recovery

Inventory grew 3.9% from April to May, according to Zillow's latest Market Report, after a year of steady decline.

Industry News
Jun 16, 2021
Mortgage Lenders Expect Profit Margins To Shrink

69% of lenders believe profit margins will decrease in the months ahead, while 19% believe profits will remain the same, and 11% believe profits will increase.

Industry News
Jun 14, 2021
Real Estate Industry Calls To End Eviction Moratorium On June 30, 2021

Expanding the moratorium will only increase levels of debt on renter households and impede the recovery of the housing sector.

Industry News
Jun 14, 2021