Late-season home buyers are being
drawn into the market, with buyer demand outperforming typical seasonal
patterns, according to the real estate brokerage Redfin’s Demand Pulse,
which analyzes the housing market based on home tour and offer data in
22 top real estate markets.
Home tour and offers in October appeared “more robust than expected
compared to typical seasonal declines,” Redfin notes in its report.
Offers signed by Redfin customers rose 7.8 percent month over month in
October. For comparison, in October 2012, offers had dropped 3.8
percent.
"Since mid-September, mortgage rates have done an about-face thanks
to the Fed's decision to keep its stimulus program in place, providing
extra incentive for buyers to continue their search," says Ellen
Haberle, a Redfin economist. "Moreover, competition is dropping
steadily, which is helping to boost buyers’ negotiating power. For
buyers who have contended with heavy competition and rising rates and
prices in 2013, these changes are a breath of fresh air."
The report showed the government shutdown did prompt many home buyers
to halt their searches. But after the government reopened, buyers
started to re-emerge.
During the two-week government shutdown, tours declined 2.8 percent
and offers fell 8.4 percent. After the government reopened, tours
rebounded 3.4 percent while offers rose 2.4 percent.