Home-Buyer Demand Declines in August

[DARLENE M. KELLER]

A report by Redfin found that home-buyer demand declined in August. According to the Real Time Demand Pulse, the number of home tours requested by Redfin customers declined 10 percent month-over-month in August and 6 percent compared with the previous year. Week-over-week, tours declined 9.5 percent.

Offers to purchase homes made by Redfin customers also declined in August, falling 7.5 percent compared with July and 4.3 percent from the previous year. Week over week, offers were down 0.9 percent, compared with a 0.7 percent gain in 2012.

According to Redfin, a combination of factors likely contributed to the August decline in home-buyer demand. Mortgage rates and home prices continued to rise, pricing more buyers out of the market. August's Redfin Buyer Survey found that 63 percent of buyers said rising mortgage rates are impacting their ability to buy the home they want. Buyers also faced another month of low inventory and were likely feeling fatigued after continued bidding wars, causing them to pause or delay their home-buying plans.

Source: CAR