The number of consumers looking to buy a home reached an all-time high in January, according to the Redfin Housing Demand Index.
The index rose 6.5% from the previous month to a seasonally-adjusted level of 130 in January, Redfin reported Tuesday. The index's benchmark level at 100 is equivalent to the historical average for housing demand for the three-year period between January 2013 and December 2015.
The index was first reported in January 2013 and is based on Redfin customers requesting to tour homes or writing offers on properties. The number of buyers requesting tours rose 3.2% month over month on a seasonally-adjusted basis, while the share of buyers making offers increased 13% during the same time period.
"Soaring stock markets, still low mortgage rates and a steady economy bolstered homebuyers at the start of 2017," Redfin chief economist Nela Richardson said in a news release.
"However, this uptick in homebuyer enthusiasm won’t guarantee strong sales in the coming months," Richardson added. "With pending home sales down across the country in January despite strong demand, the lack of supply is a formidable foe for buyers this year."
The report also cautioned that January typically seems supply much more limited for homebuyers. In January, there were 13.4% fewer homes on the market than a year earlier.
