Redfin Report: Housing Market “Heating Up” Following 2024 Election

11/27/24 •

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• English

Following the 2024 presidential election, the housing market is showing signs of increased buyer activity, with Redfin's home buyer demand index up 177% year-over-year. This increase in demand is occurring despite higher mortgage rates and during a typically slow season, potentially indicating a shift in market conditions. While some of the increase may be attributed to pent-up demand after the election, the changes in migration patterns and investor behavior also suggest a potentially lasting impact on the market.

Increased Buyer Activity

• 00:00:36 The housing market is experiencing a notable increase in buyer demand, with Redfin's home buyer demand index rising 177% year-over-year. This surge in demand follows a period of slower sales, with 2024 projected to see fewer than 4 million home sales compared to the typical 5.2-5.3 million. The increase is noteworthy as it's occurring despite higher mortgage rates and during a typically slow time of year, potentially indicating a larger market shift.

Migration Patterns

• 00:03:31 A recent Redfin study highlights key migration trends, revealing that people desire more space, with renters prioritizing this factor more than homeowners. This preference for larger units could further fuel demand in suburban areas, where unit sizes are generally larger, and potentially continue the trend of suburban growth over urban centers. Renters are also increasingly motivated by lower rental prices, suggesting potential demand increases in more affordable markets like the Midwest and Southeast.

Real Estate Investor Behavior

• 00:06:52 Following a surge during the pandemic, investor purchases of homes have returned to pre-pandemic levels, representing around 16% of total home purchases in Q3 2024. This decline is attributed to higher interest rates, impacting both regular and institutional investors. However, the slowdown in institutional investment, particularly from hedge funds and private equity, could create opportunities for smaller investors, potentially allowing them to negotiate better deals on properties like duplexes and triplexes that are now staying on the market longer.