Homebuyers are jumping into the market now that the election has passed and the Fed has cut interest rates for the second time in a row, according to a new report from Redfin.
The number of people contacting Redfin agents for help buying and/or selling their home is up by double digits from a year ago. Redfin’s Homebuyer Demand Index– rose 17 percent year-over-year to its highest level since August 2023, continuing an increase that started immediately after the election.
That 17 percent increase is the biggest since January 2022. It’s worth noting that Redfin is comparing to a period in 2023 when high mortgage rates were pushing down demand. Mortgage-purchase applications are up 2 percent week-over- week, and pending home sales rose 4.5 percent year-over-year during the four weeks ending Nov. 17, in line with the increases seen over the last month and a half.
“The burst of buyers and sellers jumping into the market is the result of pent-up demand from people who were waiting for the election to pass, and for the Fed to cut interest rates a second time,” Redfin Economic Research Lead Chen Zhao said in a release. “Even though mortgage rates have been rising since both of those things happened, house hunters who had pressed pause are jumping back in. Now we’re keeping a close eye on whether this is a short post-election boom, or if it translates into a steady improvement in pending sales.”
New listings rose marginally (0.4 percent) year-over-year, and the total number of homes for sale is up 11.8 percent, for the four weeks ending Nov. 17, Redfin added.
“The market is moving surprisingly quickly right now, given that rates are fairly high and we’re well into fall, when buyers and sellers are typically winding down for the holidays,” Meme Loggins, a Redfin Premier agent in Portland, Ore., said. “Some homebuyers are still having trouble getting over the psychological barrier of high mortgage rates, but plenty others are accepting that rates aren’t coming down anytime soon and taking out conventional or FHA loans. I’m advising buyers who can afford today’s high costs to move forward because prices are lower in this area than they were a year ago, and they’re likely to shoot back up soon as competition heats up. And sellers should consider listing now, because there are serious buyers out there – especially for desirable homes.”