What Buyer Activity Tells Us About the Housing Market
The real estate market has undergone significant changes over the past year due to the global pandemic. However, despite the initial shock to the housing market, the demand for housing has remained strong, and this is evident in the latest ShowingTime Showing Index. The index measures the number of buyers actively touring available homes, and it shows a 62% jump in showings from December to January – one of the largest on record.
In this article, we will explore what buyer activity tells us about the current housing market and what it means for sellers, move-up buyers, and common selling myths.
The Impact of the Housing Shortage on Buyer Activity
One of the primary factors driving the current state of the housing market is the shortage of homes on the market. According to U.S. News, “demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.” This has created a highly competitive environment where buyers are willing to act quickly to secure a home.
As a result, even with the increased availability of virtual home tours, there has been a surge in buyer showings. The number of showings in January was higher than in any other month since last May. This shows that buyers are actively looking for homes, and they are willing to take action when they find one that meets their needs.
The Role of Mortgage Rates in Buyer Activity
Mortgage rates play a crucial role in the housing market. When mortgage rates are low, buyers are more likely to enter the market, and this is evident in the recent surge in buyer showings. Michael Lane, VP of Sales and Industry at ShowingTime, explains that “January’s home showings are a positive sign that buyers are getting back out there” after the rapid cooldown experienced last year.
However, it’s essential to note that mortgage rates may be volatile right now, and this could impact buyer activity in the coming months. Nevertheless, the current surge in buyer activity indicates that there is a strong interest in purchasing a home.
What Buyer Activity Means for Sellers
If you’re thinking of selling your home, the surge in buyer activity should be encouraging news. Even with the shortage of homes on the market, there are buyers out there looking for a home that meets their needs. Therefore, it’s crucial to work with a real estate agent to ensure that your home is priced correctly and presented effectively to attract potential buyers.
What Buyer Activity Means for Move-Up Buyers
Move-up buyers are those who are looking to upgrade their homes or move to a new location. The surge in buyer activity presents an opportunity for move-up buyers to enter the market and secure a home that meets their needs. However, it’s essential to work with a real estate agent to navigate the competitive environment and ensure that you’re making an informed decision.
Common Selling Myths and Buyer Activity
There are several selling myths that can impact a seller’s decision to enter the market, such as the belief that it’s better to wait for the “right time” to sell. However, the surge in buyer activity indicates that there is a strong demand for homes, and this could be the right time to sell.
Another common selling myth is that you should price your home high to leave room for negotiation. However, in a competitive market, pricing your home too high could deter potential buyers. Therefore, it’s crucial to work with a real estate agent to price your home effectively and ensure that it attracts potential buyers.
Spring of 2023 Real Estate Outlook
The surge in buyer activity in January is a positive sign that there is a strong demand for homes. While mortgage rates may be volatile, the current market conditions present an opportunity for sellers and move-up buyers to enter the market. However, it’s essential to work
Dan Skelly Real Estate
- 1 What Buyer Activity Tells Us About the Housing Market
- 2 The Impact of the Housing Shortage on Buyer Activity
- 3 The Role of Mortgage Rates in Buyer Activity
- 4 What Buyer Activity Means for Sellers
- 5 What Buyer Activity Means for Move-Up Buyers
- 6 Common Selling Myths and Buyer Activity
- 7 Spring of 2023 Real Estate Outlook