Despite higher mortgage rates, buyer activity is increasing.

If you're a homeowner considering a relocation, you may be wondering if now is a good time to sell your property. Now for the good news. Even with rising mortgage rates, buyer traffic is increasing.

Data from the most current ShowingTime Showing Index, a measure of active buyers touring houses, helps build a picture of how much buyer demand has climbed in recent months (see graph below):

The graph illustrates that buyer traffic increased significantly in the first two months of 2023. This is most likely due to the restricted amount of available properties, which kept buyers shopping even during the colder months.

Let's compare foot traffic in February to each February over the prior six years to help explain why the newest data is important (see graph below).It demonstrates that this was one of the best Februarys for buyer activity in recent memory.

We witnessed the greatest February buyer activity in the previous six years in 2021 and 2022 (marked in green above), but both years were quite uncommon for the property market. So, when we compare February 2023 to more normal, pre-pandemic years, data shows that this year still marks a significant increase in buyer activity.

The rise in buyer traffic is even more notable in light of the February rate hike. The 30-year fixed mortgage rate at Freddie Mac increased from 6.09% in the week of February 2nd to 6.50% in the week of February 23rd. Even with increasing interest rates, though, more buyers were seeking for a home.

According to Jeff Tucker, Senior Economist at Zillow, rising buyer activity may continue:

“More buyers will keep coming out of the woodwork. We always see a seasonal uptick in home shoppers in March and April . . .”

If you're hoping to sell your home, the fact that buyers are still active in the market this year should give you hope. It's a hint that buyers are seeking for properties similar to yours. Working with a real estate expert to market your property immediately will put it in front of prospective buyers right away.

Bottom Line

Rising foot traffic is a positive sign for the property market this year, indicating that buyers are eager to buy this year despite increased mortgage rates. If you're ready to sell your home, work with a real estate agent.