The percentage of people looking to buy a home dropped 0.2% in December, according to the Redfin Housing Demand Index and reported by Redfin chief economist Nela Richardson.
With the small drop, home buyer demand is back at late 2014 levels following a 7.1% year-over-year increase in November. The number of Redfin customers requesting tours rose just 19.6%, a marked downshift from November’s 28.8% increase. Growth in the number of customers writing offers fell to 3.7% from 7.7% year-over-year growth in November.
Richardson reports that demand slowdown is common in December, but not to this extent. “The holiday season usually slows demand, however the downshift in December was sudden,” says Richardson. “This was a steeper decline than we saw last year and it may feel jarring to sellers after so many months of strong buyer interest. What’s important for people to know is that demand is still there, it’s just not at the level of growth that we’re used to seeing. We need more listings for that.”