5 signs homebuyer demand is slowing, according to Redfin

The housing market surge continues to show signs of weakening, with Redfin recording a double-digit decline in homebuyer demand, compared to a year ago, for the second time in three weeks.

The company’s homebuyer demand index was down 12% on an annual basis for the week of June 5, compared with a 9% decline for the week of May 29 and 12% for the week of May 22. At that time, Redfin said it was the largest fall-off for the demand index since the early days of the pandemic, back in April 2020.

“Sellers are losing control of the housing market as homes that are overpriced or less desirable are increasingly having price reductions and taking longer to sell,” Taylor Marr, Redfin’s deputy chief economist, said in a press release.

But don’t start the 10-count on the latest housing boom just yet.

“Although demand is easing, some homebuyers may jump back into the market when price growth loses steam and interest rates continue to stabilize,” Marr continued. “A strong labor market will continue to be a driving force for the bulk home buying demand this year.”

Here are some other signs of potential purchasers losing interest in the market: