Last month, the Redfin Housing Demand Index fell 6.2 percent to 127 from October’s 136. Furthermore, the seasonally adjusted number of buyers requesting home tours was down in November by 1.9 percent, while the number of offers being made was 14.7 percent below October’s level.
On a year-over-year measurement, things were very different. The Demand Index increased 29.1 percent in November while the number of buyers requesting tours increased 41.3 percent, the number of offers being made was up by 10.5 percent.
But year-over-year activity was not upward when it came to inventory. Across the 15 metros covered by the Demand Index, there were 18 percent fewer homes for sale compared to November 2016. November marked the 30th consecutive month of year-over-year inventory declines and the fifth consecutive month of double-digit declines.
“Three years of low inventory is taking its toll on buyer demand in terms of tour and offer activity,” said Redfin Chief Economist Nela Richardson. “People still want to buy homes, especially before mortgage interest rates increase and prices rise even more. But there just aren’t enough homes for sale, especially at lower- to mid-level prices.”