Homebuyers Are Still More Active Than Usual

Buyer Activity Trends in Today's Housing Market

In recent years, the housing market has witnessed unprecedented levels of activity, often characterized by bidding wars and skyrocketing home prices. However, as we move into 2023, the market has experienced a shift. While the frenzy of the 'unicorn' years is behind us, it doesn't mean the market is at a standstill. In fact, buyer traffic is still strong today.

Understanding the ShowingTime Showing Index

To gauge buyer activity, real estate professionals rely on the ShowingTime Showing Index. This index measures how many buyers are touring homes, providing valuable insights into the current state of the market. Let's look at the trends over time to put today's market activity into perspective.

Seasonality in Real Estate

Historically, the housing market follows a seasonal pattern. In normal years (shown in gray), buyer activity typically peaks in the first half of each year, coinciding with the peak homebuying season in the spring. As the year progresses, activity slows down.

However, the pattern was disrupted when the pandemic hit in March 2020 (shown in blue). The market responded to the uncertainty, leading to fluctuations in buyer activity. Following that, we entered the 'unicorn' years of housing (shown in pink), marked by record-low mortgage rates and soaring buyer demand. Despite these unprecedented times, the seasonal trends still persisted, albeit at much higher levels.

Buyer Activity in 2023

As we move into 2023, the market is showing signs of a slow return to more normal seasonality. While traffic is down from the previous month, it remains stronger than the peaks observed in the 'unicorn' years. The slight decline in activity is not alarming; it's a reflection of the market's gradual shift towards more balanced conditions. According to 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..."

Buyer Demand is Still Strong

To emphasize the ongoing strength of buyer demand, let's zoom in and examine the data for May in the last five years. The graph illustrates that buyer activity is still robust compared to previous years, even though it has eased from the peak frenzy.

What This Means for Home Sellers

The market is far from dormant; buyers are actively searching for their dream homes. If your house isn't on the market, it's missing out on attracting potential buyers who are eager to make a purchase right now. While the market may have cooled slightly, demand hasn't disappeared. In many places, buyer activity remains strong, primarily due to the limited supply of homes for sale.

As a homeowner, it's essential not to underestimate the current level of market activity. Partnering with a knowledgeable real estate professional can help you navigate the nuances of the current market and position your home effectively to attract buyers. Don't miss out on the opportunity to get your home in front of motivated buyers - let's connect and start the process today.

Frequently Asked Questions (FAQs)

1. Is the housing market still competitive for buyers? Absolutely! While the frenzy of bidding wars has subsided from the 'unicorn' years, buyer activity remains strong. The market is still competitive due to the low supply of homes for sale, driving demand among motivated buyers.

2. How can a real estate agent help me in this market? A real estate agent is your key to success in today's competitive market. They are experts in the local market and can provide valuable insights into current trends. They will help you navigate multiple-offer scenarios, negotiate on your behalf, and cater your offer to what sellers are looking for, giving you a competitive edge.

3. Why is getting pre-approved for a home loan important? In the current affordability challenges, having a clear budget is crucial. Getting pre-approved for a home loan will give you a better understanding of what you can borrow, making you financially confident. Sellers also take pre-approved buyers more seriously, enhancing your chances in a multiple-offer situation.

4. Should I make a lowball offer to get the best deal? While it's natural to want the best deal, submitting a significantly low offer can be risky. Sellers may feel insulted and reject such offers outright. Trust your agent's expertise to find a price that's fair to both you and the seller, ensuring your offer is taken seriously.

5. Are buyers still waiving home inspections? During the 'unicorn' years, some buyers skipped home inspections to win in bidding wars. However, this practice is less common today. Inspections are essential to identify any potential issues and give you valuable negotiating power. Don't hesitate to have a home inspected and use it as a useful tactic during negotiations.