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The Key Takeaways
- Redfin reported that the demand for homebuyers was lower in early January by 11% compared with the prior month.
- New listings and pending sales have seen their biggest drop since 2023.
- According to the report, wildfires in Southern California and the cold weather throughout the United States have impacted housing.
A report published this week said that wildfires in Southern California, and the cold weather elsewhere in the United States kept homebuyers away from homeshopping in January.
Redfin Homebuyer Demand Index decreased by 11% in the last four weeks, ending January 12. Home tours, as well as other purchasing activity measured by Redfin reached their lowest level since August.
Reports also revealed that home sales were down 8.4% from the same point last year. This is the highest decline since October 20,23. The steepest decline since September of 2023 was the 3.6% drop in new listings.
The cold temperatures can affect the demand in some areas
Redfin stated that the demand for homes was lower in general throughout the Northeast, Midwest, and South. This can be partly attributed to snow and freezing temperatures.
Many states experienced a cold snap and sleet and snow in January. Redfin reported that the cold discouraged many home buyers from going out and kept homeowners away.
Wildfires have impacted the demand for homes in Los Angeles
In the Los Angeles region, home listings decreased by 2.5% and pending sales fell by 4%. The decline in homebuying activity comes as wildfires have ravaged the area in recent weeks. Officials reported 25 deaths, and AccuWeather estimated between $250 billion and $275 billion in damages from the natural disaster.
Redfin Economic Research lead Chen Zhao says that the sales and listing in this area are likely to continue declining in the coming week. The demand for homes in the region is also likely to rise, because people will look to buy new houses after the disaster. Interest in rental properties is expected to surge.
“So many people now have to find new homes, and we’re seeing a chaotic ripple effect in the market,” Susan Brown is a Redfin Premier Agent in Los Angeles, and she was quoted in a report. “I’ve personally had three people who lost their homes reach out to me to start searching, and we all have an influx of clients looking for rental properties.”
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