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

Navigating the Rising Tide: Protecting Your Home in Insurance Deserts

Explore the challenges and solutions facing homeowners in areas known as "insurance deserts" where escalating premiums and climate risks make obtaining affordable cove… Read more

Navigating Orange County’s Housing Market Amid Nationwide Trends

Housing starts in the US hit a 4-month low, with multifamily construction declining but single-family homes rebounding in storm-affected regions. Discover what this me… Read more

Embracing the Golden Age of Guest Bedrooms: A Trend Transforming American Homes

Explore the surprising trend of shrinking household sizes in the U.S. and how it has ushered in a golden age for guest bedrooms. With an all-time high in spare bedroom… Read more

AI Tools Revolutionizing Real Estate: How Tech Simplifies Industrial Real Estate Operations

Discover cutting-edge AI tools transforming industrial real estate by streamlining logistics, site selection, property management, and marketing. Let’s make your move … Read more

Southern California's Real Estate Landscape: Key Developments and Industry Movers

Stay updated with the latest shifts in the Southern California real estate scene for December 2024. From new divisions and leadership changes to significant industry a… Read more

Understanding Tax-Assessed Value vs. Market Value

Discover the differences between tax-assessed value and market value in real estate, and how these valuations affect your property transactions. Learn to navigate thes… Read more

A Model for Affordable Housing and Community Transformation of Hope Village

Discover Hope Village, a groundbreaking faith-based affordable housing project in Walnut Creek, provides safe, stable homes for the homeless. Learn how this initiative… Read more

When the Smoke Clears: Real Estate Resilience Amid Wildfires

Dive into the effects of the Malibu wildfires on California's real estate landscape. From safeguarding properties to tackling insurance obstacles, this blog offers ess… Read more

The Clash Between Progress and Community of Data Centers and Neighborhoods

Explore the growing tension between data center expansion and community well-being. Learn how these developments impact local neighborhoods, what they mean for residen… Read more

We are excited to assist you in finding your perfect home

Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most