Don’t worry if you thought people stopped wanting to buy houses when mortgage rates went up. The information says there are still many people who want to buy houses. The housing market is not as crazy as it was during the super busy years when a lot of people wanted to buy houses, mortgage rates were very low, and house prices went up a lot. But it doesn’t mean things are not happening in the market.
Across the country, many people still want to buy houses compared to the years when everything was normal in the housing market. Lots of buyers are doing things right now. I have the information to show it.
Showing Traffic Is Up
The ShowingTime Showing Index helps us see how often buyers are visiting homes. The graph below uses this index to display buyer activity over the last eight Octobers:
On the graph, the ‘unicorn’ years are highlighted in pink. You can notice that demand has decreased a bit since then, mainly because of higher mortgage rates. However, when you compare 2023 to the blue bars on the left, which represent the last normal years in the market (2018-2019), you can see that buyers are still more active than usual.
But looking at how many offers other sellers are getting and how long homes stay on the market also shows that buyer demand is still high. These factors tell the same story as the showing traffic on the graph.
Sellers Are Still Seeing Multiple Offers
Based on the newest information from the National Association of Realtors (NAR), sellers, on average, are getting 2.5 offers on their houses. Let’s examine how this compares to the past few years (refer to the graph below):
It’s accurate that the current average of 2.5 offers for sellers is lower than what sellers received during the ‘unicorn’ years (highlighted in pink). However, when compared to last year, the number has increased a bit. Moreover, it’s higher than the average in the more typical, pre-‘unicorn’ years in the housing market.
Homes Priced Right Are Selling Fast
It’s not just that sellers are usually getting more than one offer; their homes are also selling quickly. This is a direct outcome of the high demand from buyers. According to Zillow: “Low inventory levels are causing unexpectedly strong competition… demand has stayed strong, and homes that are attractive and priced appropriately are selling rapidly.”
To highlight that homes are still selling swiftly, let’s examine data from the National Association of Realtors (NAR) on the median days on the market for the same time of year from 2018 until now (refer to the graph below):
As the graph indicates, this year homes are on the market for just a bit longer than they were during the frenzy of the ‘unicorn’ years. When compared to the last normal years in the market, homes are still selling much faster than they did back then. This is positive news for sellers because it suggests there are enthusiastic buyers in the current market.
Bottom Line
You haven’t missed your chance to sell in a market where sellers are getting multiple offers, and homes are selling quickly. When you’re ready to sell your house, let’s connect to get the process started.
Find out why Kaya Homes is the leader in Long Island Real Estate and are your go-to realtor in the Lynbrook, Oceanside, Malverne, Hewlett, Valley Stream, East Rockaway, Woodmere, Cedarhurst, Baldwin, North Woodmere, Woodsburgh, Hewlett Neck Hewlett Harbor, Bellmore,Wantagh,Merrick and Freeport area.
Thu, 28 Dec 2023 22:03:48 +0000
by Mottek Group