The housing market is still active, even though it’s not as hot as it was in previous years. Buyer interest and engagement in property viewings are still robust, as indicated by the Showing Index.
The graph below shows buyer activity trends, giving insights into the current market situation. Despite the changes in the housing landscape, there are still opportunities for aspiring homeowners to navigate the process successfully.
To become a homeowner in the current market, it’s important to know about buyer traffic and trends. This will help you make smart decisions when buying a home. Stay informed, use opportunities, achieve dream of owning a home in today’s real estate market.
The housing market has a clear pattern. It has high points in the first half of the year.
This is when most people buy homes in the spring. Buyer activity gradually decreases throughout the year until the end. This can be observed in the gray parts of the graph that represent previous years.
However, when the pandemic hit in March 2020, it brought about significant changes. These changes affected both the problems faced and the behavior of buyers. These changes are clearly depicted in the blue section of the graph.
Afterwards, the housing market had the ‘unicorn’ years (shown in pink), with very low mortgage rates and very high buyer demand. During this extraordinary period, seasonal trends persisted, albeit at substantially higher levels.
In 2023, there were fewer people visiting to buy compared to the previous month.
There were also fewer people compared to the peak levels seen in the ‘unicorn’ years. The decrease doesn’t mean a big drop in demand; it shows a slow return to normal seasonal patterns.The May decline of about 10% is in line with the typical seasonal patterns. These patterns were disrupted by the pandemic but are now gradually returning.
Looking at May data from the past five years, buyer demand remains strong despite a small decrease in recent times.The housing market has predictable seasonal patterns. Although buyer activity may change, the demand for homes remains strong. Understanding these patterns can help buyers and sellers make informed decisions in navigating the current real estate landscape in 2023.
What Does This Mean for Prospective Homebuyers?
For those considering becoming homeowners, this current market situation holds some key takeaways:
- Active Buyer Activity: Despite the cooling of the housing market from the ‘unicorn’ years, buyer activity remains robust. Buyer interest is much higher now compared to May 2022, when higher mortgage rates surprised people and made them hesitant. Additionally, the present level of buyer interest surpasses that of the last normal years in the market.
- Limited supply of homes for sale hampers strong buyer activity, but there is still potential for significant opportunities. This scarcity in housing inventory has become a contributing factor to the sustained demand in many areas. As a result, buyers are facing increased competition for the available properties.
- Cautious Cooling: The market has experienced a slight cooling off from the exceptional conditions seen during the ‘unicorn’ years. While this may impact some aspects of the buying process, it does not signify a disappearance of buyer demand. Rather, it’s indicative of a return to more normalized market conditions.
- Remaining Competitive: In a market with limited supply and strong buyer interest, it’s crucial for prospective homeowners to stay competitive. Being financially stable, having mortgage pre-approval, and knowing their housing needs can help buyers in the current real estate market.
- Awareness of Local Trends: Real estate conditions can vary significantly from one location to another. Buyers must know the trends in their area and consult a local agent for informed decisions.
In short, the housing market has cooled a bit, but buyers still want homes because there aren’t enough for sale. To become a homeowner, understand the market and be proactive to navigate the exciting but competitive journey of homeownership.
Bottom Line
In conclusion, it’s essential not to underestimate the current level of activity in the real estate market. With a strong demand from eager buyers, now is a prime time to consider buying your house. Let’s start the process of buying your, don’t wait any longer – let’s start the journey toward buying your home today.
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Fri, 28 Jul 2023 00:28:58 +0000
by Mottek Group