SEATTLE, WA — Redfin’s Homebuyer Demand Index has climbed to its highest level since September 2023, signaling a steady rise in housing market activity. The index, which tracks home tours and other buyer services, is up 7% compared to last year, while mortgage-purchase applications rose 17% month-over-month to their highest level since January.
Pending home sales also increased by 6.5% in the four weeks ending December 1, marking consistent growth over the last two months.
Several factors are driving this renewed activity, despite elevated mortgage rates and home prices. Many buyers, particularly those who delayed their search due to the election, are returning to the market. Additionally, buyers are adjusting to the reality of prolonged higher mortgage rates, with the current weekly average at 6.81%.
“The market is strong, with a lot of pent-up demand after a slow summer and early fall,” said Bay Area Redfin Premier agent Mimi Trieu. “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 also showed modest improvement, with new listings up 3% year-over-year. While still limited, the increase is the largest in two months, excluding a Thanksgiving-related exception.
The steady rise in demand highlights resilience in the housing market as buyers adapt to ongoing economic conditions.
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