February saw an 8.5% decline from January’s record high, according to Redfin. Despite the decline, this year’s February index was the strongest for the month since Redfin started measuring housing demand in 2013.
On a seasonally adjusted level, the number of buyers requesting tours decreased by 8.2% month over month, while buyers writing offers declined by 7.7%.
Even with the decline, demand is still outpacing supply, according to Nela Richardson, chief economist at Redfin.
“The only factor holding back sales this spring is supply,” Richardson said. “Limited inventory, particularly for starter homes, has put a crimp in the 2017 market. We expect to see more listings hit the market this spring, but there will still not be enough inventory to match homebuyer demand.”
Year-over-year, demand in February was higher by 20%, due to a 25.7% increase in homebuyers requesting tours and an 11.9% spike in buyers writing offers. The month also had 7.2% fewer new listings in the market and 13.9% fewer homes on the market.
How public transit can push home prices upward
February home prices up by 7.2% – Redfin