Homebuyers demand is rising says Redfin

More buyers are requesting tours, making offers

Homebuyers demand is rising says Redfin

Homebuyer activity increased in May according to a measure of demand from Redfin.

The brokerage’s Housing Demand Index gained 6.7% as its customers requested more home tours (6.3% increase) and made more offers (9.7%) than the previous month.

"People listing their homes for sale in higher numbers this April and May is good news for buyers, and good news for home sales," said Redfin head of analytics Pete Ziemkiewicz. "But it's still not enough to satisfy buyer demand, which means price increases will likely continue."

The index was at 116 in May; a level of 100 represents the historical average for the three-year period from January 2013 to December 2015.

Despite rising last month, the year-over-year picture is less positive. The index was 7.5% lower than in May 2017 as home tour requests were unchanged but 16.7% fewer people made offers.

Redfin says this weaker reading is not about desire but ability with the low inventory hampering buyers’ intentions.