Redfin's Housing Demand Index reveals that the demand fell 17% in June, making it the fifth straight month with year-over-year declines. Staffer Rachel Musiker takes a look at the decline and explains the improved index which tracks the earliest stages of home buyer demand across 15 major metro areas.

The index has a benchmark of 100, reflecting high/stronger-than-expected demand, and June measured in at 88. This decrease on the index will correlate with existing home sales in two months:

Even though the market feels hot, with 7.6 percent fewer homes for sale across the 15 metros tracked by Demand Index, there simply wasn’t much for buyers to act on last month. Still, there were more buyers than homes, which meant homes sold quickly, many over list price and often in bidding wars.

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