Homebuyer Activity Remains Robust Amidst Shifting Market Trends

Lisa Mailhot  |  July 27, 2023

Buyers

Homebuyer Activity Remains Robust Amidst Shifting Market Trends

 

Despite the housing market no longer experiencing the frenzy seen in the past couple of years, the current market is far from stagnant. In fact, buyer activity remains robust.

The ShowingTime Showing Index serves as a metric to gauge the level of home tours conducted by buyers. The graph presented below utilizes this index to depict buyer activity trends over time, aiding in providing a clear understanding of the current situation.

The data reveals a clear seasonality in the real estate market. Looking at the previous normal years (depicted in gray), a consistent pattern emerges, with buyer activity peaking in the first half of each year, particularly during the spring's peak homebuying season, and gradually slowing down towards the end of each year.

However, when the pandemic emerged in March 2020, this trend was disrupted as the market reacted to the uncertainty (shown in blue in the middle). Subsequently, we experienced the 'unicorn' years of housing (shown in pink), characterized by historically low mortgage rates and a surge in buyer demand. Remarkably, even during this period, similar seasonal trends persisted, but at significantly higher levels.

Now, turning our attention to the year 2023, we observe a decrease in traffic compared to the previous month, and it is also lower than the peaks witnessed during the 'unicorn' years. However, this decline in traffic does not indicate a sharp decrease in demand; rather, it reflects a gradual transition towards a more typical seasonal pattern. As elucidated in 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 . . .”

To emphasize that the decline is not significant, let's take a closer look. Below is a graph that focuses solely on the May data from the past five years, vividly demonstrating the continued strength of buyer demand.

 

 

What Does That Mean for You?

Buyers are actively touring homes, displaying more engagement than in May 2022 (when higher mortgage rates caused some sticker shock) and certainly more than during the last normal years. Therefore, it's crucial to recognize that buyer activity remains robust. Additionally, this demand could be even stronger if not constrained by the limited supply of homes for sale, as mentioned by U.S. News:

“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.”

Bottom Line

The market remains highly active today. If your house is not on the market, it's missing out on the opportunity to attract the numerous buyers currently seeking to make a purchase. Let's connect to start the process.


Recent Blog Posts

Stay up to date on the latest real estate trends.

Sellers

Converted Churches, Barns, and Factories: Unconventional Home Conversions

Lisa Mailhot  |  November 30, 2023

Experience Unique Living: Converted Churches, Barns, and Factories Turned Homes. Discover the charm of unconventional conversions with history, character, and modern c… Read more

Buyers

Unveiling the Hidden Gems of Orange County: 10 Intriguing Trivia Facts

Lisa Mailhot  |  November 28, 2023

Delve into the secrets of Orange County, California, with our blog featuring captivating trivia facts. Whether you're a potential buyer, seller, or a curious tourist, … Read more

Buyers

Orange County Real Estate in 2023: Market Trends and Insights

Lisa Mailhot  |  November 27, 2023

Uncover 2023 Orange County Housing Market Trends: Delve into median sold prices, sales metrics, and market dynamics to understand if it's a buyer's or seller's market.… Read more

Buyers

Last-Minute Gifts for the Home: Thoughtful Ideas for Stress-Free Holiday Giving

Lisa Mailhot  |  November 22, 2023

Stuck in a last-minute gift scramble? Discover seven low-stress, last-minute gift ideas that'll delight your loved ones and elevate their home experience. From cozy th… Read more

Sellers

Unlocking Opportunities: Lower Mortgage Rejection Rates Point to a Brighter Real Estate Horizon

Lisa Mailhot  |  November 21, 2023

Explore the changing real estate landscape influenced by declining mortgage rejection rates. Discover the opportune moment for buying or selling your home while improv… Read more

Sellers

Dealing with Problematic Neighbors When Selling Your Home

Lisa Mailhot  |  November 20, 2023

 Selling your home with challenging neighbors? Learn how to handle noisy, disrespectful, or problematic neighbors effectively. Follow these tips to ease the selling pr… Read more

Buyers

Orange County Real Estate Trends: November 2023 Market Insights

Lisa Mailhot  |  November 16, 2023

Get the latest insights into the Orange County real estate market. Discover trends, notable closings, and the impact of the holiday season on inventory. Stay informed … Read more

Buyers

FHFA Sets 2024 Multifamily Loan Purchase Caps: What Realtors Need to Know

Lisa Mailhot  |  November 15, 2023

Stay informed on FHFA's 2024 multifamily loan purchase caps, totaling $140 billion for Fannie Mae and Freddie Mac. Explore the impact on the multifamily market and its… Read more

Sellers

Navigating Today's Housing Market: The Rise of 'Nepo-Homebuyers

Lisa Mailhot  |  November 14, 2023

Learn about the rise of alternative lenders, such as parents, as a solution to the affordability challenge in today's real estate market. Explore available options for… Read more

Let’s Talk

You’ve got questions and we can’t wait to answer them.