The number of people seeking new homes slipped 4.3 percent in June — albeit from an all-time high in May, according to the most recent Redfin Housing Demand Index. In the index, 100 represents the historical average for the three-year period from January 2013 to December 2015, and in June, the index was at 130.
“In this market, homebuyers have to move fast, yet high prices and low inventory are slowing down even the most earnest of house hunters,” said Redfin chief economist Nela Richardson. “Buyers toured in full force last month, even though there were fewer homes hitting the market. New listings fell 3.3 percent from May and were down 1.6 percent from a year ago. Faced with a low supply of homes for sale and extremely competitive conditions, many homebuyers are struggling to make it to the offer stage.”
Inventory is a major constraint for buyers on the market right now, with the index showing that in the 15 metro areas it covers, there were 12.2 percent fewer homes for sale in June than the previous year. That decrease continues 25 straight month of decreasing inventories — and six straight months of double-digit declines.
Despite the dip from May, demand was still up 27.8 percent year over year in June, according to Redfin.