Homebuyers Remain Highly Engaged in the Market

While the housing market's frenzy has subsided from its peak in the last couple of years, it is far from standing still. In fact, the current market continues to boast robust buyer traffic.

The ShowingTime Showing Index gauges the level of home tours conducted by buyers. The following graph utilizes this index to depict the trends in buyer activity over time, providing valuable context for the present situation.

The data reveals a notable seasonal pattern in the real estate market. By examining the previous years considered as "normal" (depicted in gray), a consistent trend emerges: buyer activity reaches its highest point during the first half of each year, aligning with the peak homebuying season in the spring, and gradually tapers off as the year progresses.

The arrival of the pandemic in March 2020 caused a disruption to the established trend (depicted in blue in the middle), as the market reacted to the uncertainty it brought. Subsequently, we entered what could be referred to as the ‘unicorn’ years of housing (shown in pink), characterized by historically low mortgage rates and soaring buyer demand. Even during this period, similar seasonal trends persisted, albeit at significantly elevated levels.

Now, turning our attention to 2023, it's evident that the current buyer traffic has decreased compared to the previous month and is also below the peaks observed during the ‘unicorn’ years. However, this decline does not signify a sharp drop in demand; rather, it indicates a gradual shift back towards a more typical seasonal pattern. As explained in the ShowingTime report:

"During May, showing traffic experienced a decline of approximately 10%... This aligns with the typical seasonal pattern that was initially disrupted by the pandemic but is now gradually returning to its regular course..."

Furthermore, to emphasize that this decline is not significant, let's take a closer look. Below is a graph that focuses solely on the May data from the last five years, demonstrating the continued strength of buyer demand.

What Does That Mean for You?

Buyers are actively touring homes, showing more enthusiasm than they did in May 2022 when higher mortgage rates caused some sticker shock, and certainly more than in the pre-pandemic normal years. Therefore, it's essential to keep in mind that buyer activity remains robust. Moreover, this demand could potentially be even higher if not restricted by the limited supply of homes for sale, as reported by U.S. News.

"Housing markets have experienced a slight cooling, but the demand has not vanished; in fact, it remains strong in many areas primarily due to the shortage of homes available for sale."

Bottom Line

It's crucial not to overlook the current market's high activity level. If your house isn't listed for sale, it means you're missing out on the opportunity to showcase your property to the multitude of eager buyers actively looking to make a purchase. To get started, reach out to a real estate agent and initiate the selling process today.