February's consumer demand for housing was the strongest ever for that month, but a lack of supply will likely leave many disappointed.
Redfin's Housing Demand Index was 118 on a seasonally adjusted basis for February. It was the highest for that particular month since the survey started in 2013, although down 8.5% from its
Last February's index was 104, while the previous high for the month was in 2013 at 112.
An index value of 100 is the historical average for housing demand between January 2013 and December 2015.
Demand was up 20% compared to the previous February, led by a 25.7% year-over-year increase in homebuyers requesting tours and an 11.9% increase in buyers making offers.
The number of buyers requesting tours was down 8.2% from January on a seasonally adjusted basis, while the number of buyers writing offers was down 7.7%.
"The only factor holding back sales this spring is supply," said Redfin Chief Economist Nela Richardson in a press release. "Limited inventory, particularly for starter homes, has put a crimp in the 2017 market. We expect to see more listings hit the market this spring, but there will still not be enough inventory to match homebuyer demand."
On a year-over-year basis, there were 7.2% fewer new listings in February and 13.9% fewer homes for sale, Redfin said.
