The New Year kicked-off with some good news for U.S. home sales: There was a 2% increase in the number of people shopping for homes, according to Redfin.
The firm’s Homebuyer Demand Index – a seasonally adjusted measure of tours and other buying services from Redfin agents – posted a small 2% increase from a month earlier during the week ended January 5.
In addition, the index is up 2% year over year.
Redfin says there are several reasons a few more buyers are out there: Some have accepted high mortgage rates; daily average rates hit a seven-month high this week and they’re unlikely to decline significantly soon.
Some are jumping into the market now that the holidays have passed and a new year has begun – and some are taking advantage of the fact that there are more homes on the market than there have been over the last few years.
“Three of the four offers my clients have made in the last week have competed against other offers with competitive terms, like waiving all contingencies and releasing earnest money early,” says Emily Lam, a Redfin Premier agent in the Seattle area, in a release. “Some homes are getting multiple offers within 24 hours of hitting the market. Some buyers are getting serious about their search because they’ve come to terms with 7 percent rates and they’re worried that if they wait longer, home prices will just keep rising. Others are starting their search in hopes that rates will decline soon. Either way, I’m advising buyers to get serious now because desirable listings will get more competitive as the year goes on.”
Nationwide, the small increase in tours hasn’t yet translated to an uptick in sales, Redfin says.
Photo: Ian MacDonald