Homebuyers Are Still More Active Than Usual

The real estate landscape has undergone significant shifts in the last couple of years, with the housing market witnessing a frenzy that was unparalleled. While the intense fervor may have settled down, this doesn't imply that the market is at a standstill. Quite the contrary, buyer traffic remains robust and active today.

The ShowingTime Showing Index serves as an essential indicator of how actively buyers are touring homes. Historically, the real estate market displayed seasonality, with buyer activity reaching its peak during the first half of each year, especially in the spring, the peak homebuying season. This activity usually slows down towards the end of each year.

However, when the pandemic struck in March 2020, it disrupted this regular pattern as the market grappled with uncertainty. What followed were what experts referred to as the 'unicorn' years of housing, characterized by record-low mortgage rates and soaring buyer demand. Even during this extraordinary period, seasonal trends persisted, albeit at much higher levels.

Fast forward to 2023, while traffic may be down compared to the previous month and the peaks seen during the 'unicorn' years, it's important to note that this is not a sharp drop in demand. Instead, it represents a gradual return to more normal seasonality. As per 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 put things into perspective, let's zoom in on the May data for the last five years. The graph clearly illustrates the continued strength of buyer demand.

What Does That Mean for You?

If you're a potential seller, it's crucial not to underestimate the current level of buyer activity. The market is still quite active, surpassing the levels seen in May 2022 when higher mortgage rates caused some sticker shock among buyers. In fact, buyer activity today is even higher than it was during the last "normal" years.

The key factor holding back even more intense buyer activity is the limited supply of homes for sale. This scarcity of inventory has kept the demand strong in many places, even as housing markets have cooled slightly. According to U.S. News:

“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

The takeaway here is not to lose sight of the ongoing activity in the current market. If you're a homeowner considering selling your property, it's vital to understand that there are still numerous buyers out there actively looking to make a purchase right now. By connecting with a real estate agent and putting your house on the market, you can get it in front of these motivated buyers.

In conclusion, the housing market is far from stagnant. Buyers remain highly active, and the return to more normal seasonality indicates a stable and dynamic market. So, if you're ready to sell, take advantage of the current buyer demand and connect with a real estate agent to start the process.