Redfin’s new property index sees unexpected slowdown

A new national housing index that aims to predict the direction of prices and sales activity suggests the hot market could cool off more sharply than expected.

Seattle-based brokerage Redfin says its demand index, being released Thursday, is “the industry’s first and only measure of housing activity prior to purchase.” The index is based on millions of visits to Redfin’s website, thousands of requests for home tours and offers written on homes in 15 major metros, the privately held firm said.

U.S. homebuyer demand in June was up 13 percent over the year, according to Redfin, a smaller 12-month gain than in previous months. Redfin forecasts that home prices will be up 4.3 percent over the year…