Home / News / Market Studies / Homebuyer Activity Slows in December
Print This Post Print This Post

Homebuyer Activity Slows in December

Homebuyer demand experienced a sharp downturn as the book closed on 2013, according to """"Redfin's"""":http://redfin.com/ numbers.


The """"company's statistics"""":http://www.redfin.com/research/reports/real-time-demand-pulse#.Us1mo_RDte9 show the number of customers requesting tours falling 14.8 percent month-over-month in December--more than double the 7.1 percent drop recorded at the same time last year.


Meanwhile, the number of Redfin customers making offers on homes fell 20.2 percent, a steeper decline than last year's 16.7 percent drop.

""""While it is normal for homebuyer activity to fall during the holiday season, the worsening shortage of homes for sale in December was likely a key factor in the sharper-than-expected drop in demand,"""" said Redfin analyst Ellen Haberle. """"Across Redfin's 22 markets, the number of new homes listed for sale dropped 27 percent from November to December, compared to 24 percent in 2012 and 19 percent in 2011.""""

Meanwhile, Haberle added, rising mortgage rates have set off alarms for budget-minded homebuyers.

""""Homebuyer anxiety is starting to rise,"""" reported Redfin agent Wayne Olson, who operates in Oregon. """"Now, with mortgage rates rising, they are increasingly concerned about their budget. They're also nervous about facing stiff competition in the coming months as more buyers enter the market.""""

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.

Check Also

Housing Market Begins to Recover from November Low

According to a new Redfin report, mortgage applications are up nearly 30% from early November, as the average 30-year-fixed mortgage rate declined to 6.15% from its November peak.