Redfin’s Homebuyer Demand Index, a key metric that adjusts for seasonal changes and measures interest in home tours and similar services, is near its highest point since September 2023. This index shows a 7% increase compared to last year, highlighting a growing trend in buyer interest.
Mortgage-purchase applications have surged by 17% month over month, reaching levels not seen since late January. This uptick in applications is mirrored in pending home sales, which have risen by 6.5% from the previous year during the four weeks ending December 1. Such increases in home sales have been consistent over the past two months, reflecting steady buyer activity.
Several factors contribute to this renewed interest in homebuying. Many potential buyers delayed their purchases until after the election, leading to a burst of activity once the political climate stabilized. Additionally, buyers have come to terms with the reality of sustained high mortgage rates, averaging around 6.81%, falling within the 6% to 7.8% range seen over the prior two years.
Mimi Trieu, a Redfin agent in the Bay Area, noted, “The market is strong, with a lot of pent-up demand after a slow summer and early fall. Buyers realized mortgage rates may not drop below 5%, and probably not below 6%, in the near future. They are also noticing there are not many desirable, move-in ready homes for sale that are priced reasonably, so they’re pushing forward and negotiating for good deals. Homes that have been sitting on the market since the summer or early fall are finally selling.”
The supply side has also seen changes, with new property listings increasing by 3% year over year. Although modest, this rise marks the largest increase in two months, apart from the previous four-week period, which was skewed by Thanksgiving.
In Florida, specific patterns have emerged: Miami experienced an 11.5% increase in median sale prices, while Tampa saw a 1.5% decrease. Meanwhile, Jacksonville and Tampa reported significant rises in pending sales, with increases of 13.7% and 13.6%, respectively. Conversely, Miami, West Palm Beach, and Fort Lauderdale faced declines in pending sales.
The post-election period has triggered a significant shift in the housing market, encouraging more buyers to enter the fray despite ongoing financial pressures. With a combination of acclimatization to current mortgage rates and a strategic approach to purchasing, the market shows resilience and adaptability in the face of economic challenges.
Source: FloridaRealtors
