NEW YORK ( TheStreet) -- The housing market is showing signs of cooling, as steadily rising home prices and higher interest rates have slowed demand for homes.
According to the Real-Time Demand Pulse from real estate broker Redfin, the number of home tours and offers to buy homes declined 3.5% in July from the previous month. During the same period in 2012, when the housing market was just starting to recover, home tours were up 3.1%.
Home offers were also down by 11% in July over the previous month.
Redfin, which serves 22 markets, conducts a monthly analysis of the number of home tours and offers to get a pulse on buyer demand.Since peaking in April, Redfin customers touring homes and making offers has been on a steady decline. This is despite the fact that the number of homes available for sale has been increasing. "Likely factors include rising interest rates and home prices, which are pricing some buyers out of the market. Other Redfin data shows that homebuyer fatigue after months of intense competition over historically low inventory also played a role," according to the report. Industry observers are closely watching data to see if higher rates are making a dent on the recovery. So far, there has not been a strong indication from the home sales data or home price indices. This is because most data is based on contracts that were closed during the month and since it can take anywhere between 30 to 60 days for a sale to close, there is a lag in the data. -- Written by Shanthi Bharatwaj in New York. >Contact by Email. Follow @shavenk