Home buyer demand witnessed a steep decline in November, with the number of Redfin customers requesting tours and signing offers dropping 1.2% and 10.6%, respectively, following seasonal trends.
However, the drop was not as drastic as the same month in 2012, which saw tours and offers falling 11% and 13.6%, respectively.
Few buyers tend to shop for homes as the holidays start to loom closer. However, “with October’s budget and debt-ceiling mess in the rear-view mirror and the prospect for higher mortgage rates in 2014, many buyers felt like November was a window of opportunity,” Redfin agent Paul Reid said.
Additionally, Thanksgiving fell on the fourth week of November instead of the third week, giving buyers extra time to shop for houses and offset reduced demand during the holiday week.
Looking ahead, Redfin said, “In December, house hunting generally takes a back seat to retail shopping and holiday preparations for most buyers. We expect demand to drop off dramatically as Christmas nears.”