clock menu more-arrow no yes

Filed under:

Nationwide Confidence in Housing Market Up Despite Decrease in Homebuyer Demand

See the results from Redfin’s and ValueInsured’s surveys

According to ValueInsured’s newly released survey, confidence in the housing market is rising. ValueInsured reported that the ValueInsured Housing Confidence Index was 68.7 points last month, up from March's 67 points.

What is still causing homebuyers to feel anxious about purchasing their first home is the housing crisis of 2008. Of those surveyed, 63 percent of Americans and 72 percent of American Millennials said that the 2008 crisis impacted their decision in home buying. If both parties had more confidence in the housing market, more than half of those surveyed would buy or upgrade sooner, according to ValueInsured.

To create their survey, ValueInsured sampled 1,022 American adults ages 18 and older.

National real estate brokerage Redfin also recently released a new and improved Demand Index that now includes data from Washington, D.C. According to a press release, the Demand Index offers insight into homebuyer demand by compiling data on how many Redfin customers request tours and write offers.

On a national level, Redfin reported that homebuyer demand this past June fell 17 percent year-over-year, the fifth consecutive month of year-over-year declines. The number of Redfin customers requesting tours grew 9.2 percent year-over-year, and the number of Redfin customers writing offers decreased by 6.6 percent year-over-year.

In the D.C. Metro area, the number of Redfin customers requesting tours was up 25 percent year-over-year. Despite this, homebuyer demand last month decreased by 4.3 percent year-over-year with the Demand Index hitting 99. According to a press release, 100 represents the historical average for the region from January 2013 to December 2015. So, any number lower than 100 means that demand is relatively weak.

In a press release, Redfin suspected that the reason why there was no increase in offers was due to a drop in inventory by 17.6 percent year-over-year.

In a statement, Redfin agent Dan Galloway said, "There's a mismatch in the market between what homes are in high-demand and what homes are available for sale. The sweet spot for buyers is between $350,000 and $800,000 but most of the homes being listed fall outside that range. It's frustrating for buyers competing in intense bidding wars for homes in that range and for sellers above and below it seeing their homes sit on the market."