Is Buyer Demand Slipping?
October 16, 2013
Home buyer demand is showing signs of cooling this fall, fueled by growing uncertainty in the economy, according to a new report by brokerage Redfin, which analyzes housing market demand based on the brokerage’s home tour and offer data.
Offers slid 12 percent in September compared to August, reflecting a typical fall season slowdown but also concern over the government shutdown, according to the report. The number of offers made by clients posted its largest monthly drop this year, according to the report.
The decline in offers from home buyers is in stark contrast to the 4.5 percent increase seen last year during this time, when the housing market was just beginning to gain momentum, the report notes.
"Last year home buyers recognized that home prices were bottoming out, and with record-low interest rates and signs that the recession was ending, consumer confidence was high," says Aaron Drucker, Redfin's New York market manager. "Today our clients are concerned about fluctuating mortgage rates as well as the government shutdown and debt ceiling battle. When people feel uncertain about their wealth and the economy, buying a home falls to the bottom of their to-do list."
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