The demand for housing in the U.S. dropped 5 percentage points for the month of July, according to Redfin's Housing Demand Index. This is the fourth consecutive month that the index posted a decline in demand of houses in the country.
The Redfin Housing Demand Index measures and forecasts the homebuyers' activity before a housing property is purchased, reports Housing Wire. The latest Redfin report indicated a decline wherein the index fell from June's 113 level to July's 108. Real estate agents from the company also noticed that the housing market is "rapidly cooling" with buyers reportedly "reaching their limit on prices and showing less interest in hot home listings."
Michelle Ackerman, a Redfin agent, shared that "it feels like the market is at a standstill," particularly in Denver, wherein the company's agents and customers have experienced the reported slowdown. Previously, new listings in Denver sell within six days or less, states Redfin. However Ackerman reported that of the 30 expected showings with three forecasted offers, the real estate agent only had nine showings and one offer. The property that Ackerman listed was for a home less than $300,000, which was located in one of the city's top-rated school districts.
Ackerman added, "The market is changing week by week, and today's buyers are more likely to walk away from a home they feel is overpriced than last month's buyers were. Sellers now have to negotiate with buyers to make a sale happen."
However, the Redfin report also mentioned that homebuyer demand rose to 9 percent year-over-year in July. The company also projected August numbers to rise 2.2 percent for home prices, as well as a 4.6 percent increase in home sales. By September, Redfin's forecast model sees home prices to increase 5.3 percent from previous year. Home sales will also reportedly rise to 10 percent for September.
