Buyers Are Still More Active Than Normal
Even though the housing market is no longer experiencing the frenzy that was common in recent years, this does not indicate that the market is at a standstill. Actually, buyer traffic is still high today.
The ShowingTime Showing Index is a measure of how many buyers are touring homes. The graph below uses that index to illustrate buyer activity trends over time to help put today into the proper perspective.
It shows there’s seasonality in real estate. If you look at the last normal years in the market (shown in gray), there was a consistent pattern as buyer activity peaked in the first half of each year (during the peak homebuying season in the spring) and slowed as each year came to a close.
When the pandemic struck in March 2020, the market reacted to the resulting uncertainty (seen in blue in the middle). We then entered the 'unicorn' years of housing (indicated in pink). This was during a period when mortgage rates were at an all-time low and buyer demand was at an all-time high. Similar seasonal trends existed even at that time, albeit at considerably higher levels.
Now, let’s look at 2023. Traffic is down from the previous month and it’s also lower than the peaks we saw in the ‘unicorn’ years. But what’s happening isn’t a steep drop off in demand – it’s a slow return toward more normal seasonality. As the ShowingTime report explains:
“Showing traffic declined about 10% in May . . . This follows a typical seasonal pattern – disrupted by the pandemic but now beginning to return . . .”
And, to highlight this isn’t a drastic decline, let’s zoom in. Here’s a graph using just the May data for the last five years. It shows just how strong buyer demand still is.
What Does That Mean for You?
Buyers are still touring homes. They're more active than they were in May 2022 (when sticker shock over higher mortgage rates kicked in), and certainly more active than they were in previous regular years. So keep in mind that buyer activity is still high. And it could be considerably greater if the limited quantity of available homes didn't limit it. 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.”
Keep in mind how active the market is right now. If your house isn't on the market, it won't be seen by all of the buyers who are looking to buy right now. Let's connect to get things started.