Buyer Traffic Heading Towards Seasonality
Even though the housing market is no longer experiencing the frenzy that was so characteristic of the last couple of years, it doesn’t mean today’s market is at a standstill. Buyer traffic is still strong today. The Showing Index is a measure of how much buyers are touring homes. Studies support that buyer activity trends over time are increasing. It shows there’s seasonality in real estate. If you think about the last normal years in the market, there was a consistent pattern as buyer activity peaked in the first half of each year (during the peak homebuying season in the spring) and slowed as each year came to a close.
When the pandemic hit in March 2020, that trend was disrupted as the market responded to the resulting uncertainty. From there, we entered the ‘unicorn’ years of housing. This is when mortgage rates were record-low and buyer demand was sky-high. Similar seasonal trends still existed even during that time, just at much higher levels. Now, let’s look at 2023. Traffic is down from the previous month and it’s also lower than the peaks we saw in the ‘unicorn’ years. What’s happening isn’t a steep drop off in demand – it’s a slow return toward more normal seasonality. Despite the showing traffic declining about 10% back in May, a rise is set to set occur.
What Does That Mean for You?
Buyers are still out there touring homes. They’re more active than they were in May 2022 (when sticker shock over higher mortgage rates started to set in) and certainly more than they were in the last normal years. So, remember, buyer activity is still strong. It could actually be even stronger if it wasn’t constrained by the limited supply of homes for sale. According to U.S. News: Housing markets have cooled slightly over the last few months, and in many places remain strong. This is largely due to the shortage of homes on the market.
Here's the Bottom Line
Don’t lose sight of just how active the market still is today. If your house isn’t on the market, it’s not getting in front of all those buyers who are looking to make a purchase right now. If you need a local mortgage lender to count on, we are here to exceed your needs! Connect with us today at 210-366-1070 to help you start the homebuying process.