The Redfin Housing Index declined by 3.5% from September, measuring at a seasonally-adjusted level of 100 for October. Redfin staffer Alex Starace takes a look at what led to this score that represents a historical average for the three-year period from January 2013 to December 2015.
One possible reason for the drop in demand is a lack of home to choose from, with the number of homes listed in October for the 15 metro areas tracked by the Demand Index decreasing by 9.5% from last year. Demand could see an increase, thanks to the recent election, as has been the case in Chicago:
“Since the election, I’ve been extremely busy helping clients make offers and get under contract,” said [Redfin real estate agent Niko] Voutsinas. “Some people are a little bit upset about mortgage rates increasing, but most are still pushing forward. Buyers feel the rates will only continue to rise, so they might as well try to buy now, especially before the frenetic spring market.”