The Redfin Housing Demand Index fell 5.5 percent to 97 in February from a year earlier, marking the third consecutive month of year-over-year declines in demand.
It should be noted that the Redfin indicator is more purely a digital proxy of demand than foot-traffic or other signs of buyer interest. More listings online correlate with more clicks, views and engagement the listed available properties. That said, there's fairly strong signs of demand for the particular properties that do come available for sale. Redfin analyst Rachel Musiker writes:
Despite limited selection, we see strength in the numbers of buyers actively touring homes and making offers. The number of Redfin customers requesting tours rose 19.2 percent year over year, while the number writing offers increased 4.1 percent, rebounding from a 6.4 percent decline in January. And while a near-record high number of customers were touring homes last month, a smaller portion was writing offers due to the constraints of low inventory and competition from other buyers.
In February, 61 percent of offers written by Redfin agents faced bidding wars, about the same level as last year, and the typical home spent 34 days on the market, five days fewer than a year earlier.