Homebuyers Are Still More Active Than Usual
Despite the housing market no longer being as frenzied as it was in recent years, it is not at a standstill. In fact, there is still strong buyer traffic in the current market.
The ShowingTime Showing Index measures the frequency of home tours by potential buyers. The graph displayed below uses this index to display the trends in buyer activity over time, providing valuable context for the current market.
There appears to be a seasonal trend in real estate. By examining the previous stable years in the market (indicated in gray), a clear pattern emerges: buyer engagement reached its highest point in the first six months of the year (during the peak homebuying season in the spring) and gradually decreased as the year drew to a close.
In March of 2020, the pandemic caused disruption to the market, resulting in uncertainty (shown in blue in the middle). We then entered the 'unicorn' years of housing (shown in pink), characterized by record-low mortgage rates and high buyer demand. Despite this, seasonal trends persisted, albeit at much higher levels.
Let's examine the projections for 2023. There has been a decline in traffic compared to the previous month and also in comparison to the peak years that were referred to as the 'unicorn' years. However, this doesn't necessarily indicate a significant reduction in demand but rather a gradual shift back towards a more typical seasonal trend. As outlined by the ShowingTime report.
“Showing traffic declined about 10% in May . . . This follows a typical seasonal pattern – disrupted by the pandemic but now beginning to return . . .”
To clarify that there hasn't been a significant drop, let's take a closer look. The following graph only uses May data from the past five years and clearly illustrates the continued strength of buyer demand.
What Does That Mean for You?
House hunters are actively visiting properties despite the impact of higher mortgage rates in May 2022. In fact, their level of activity appears to exceed that of previous years. It's important to note that the current buyer demand would likely be even greater if there were more homes available for sale. U.S. News reports on this ongoing trend.
“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.”
Bottom Line
It's important to remember that the current real estate market is still very active. If you haven't listed your house, you're missing out on the opportunity to reach potential buyers who are actively looking to make a purchase. Let's connect and begin the process.
