Buyer Traffic Still above Pre-Pandemic Levels

The housing market is no longer in the same frenzied state as it was in recent years, but that doesn't mean it's stagnant. In fact, buyer traffic remains strong. The ShowingTime Showing Index provides insight into buyer activity. The graph below demonstrates the trends in buyer activity over time, allowing us to understand the current market. The graph reveals a seasonal pattern in real estate.

In previous years (shown in gray), buyer activity consistently peaked in the first half of each year, during the busy spring homebuying season, and then slowed down towards the end of the year. However, the pandemic disrupted this trend (shown in blue in the middle). We then entered what can be described as the "unicorn" years of the housing market (shown in pink). During this time, mortgage rates were at record lows and buyer demand was incredibly high. Seasonal trends still existed, but at much higher levels. Now, let's examine 2023. Traffic has decreased compared to the previous month and is also lower than the peaks seen during the "unicorn" years. However, this decline doesn't indicate a sharp drop in demand. Instead, it signifies a gradual return to more normal seasonal patterns.

As explained in the ShowingTime report: "In May, showing traffic declined by about 10%... This follows a typical seasonal pattern, disrupted by the pandemic but now starting to return..."

To illustrate that this decline isn't significant, let's focus on the May data for the past five years. The graph below demonstrates the continued strength of buyer demand.

What Does This Mean for You?

Buyers are still actively touring homes. They are more engaged than they were in May 2022, when higher mortgage rates caused some sticker shock, and certainly more engaged than during the previous normal years. Therefore, it's important to remember that buyer activity remains robust. In fact, it could be even stronger if there were more homes available for sale. According to U.S. News: "Housing markets have cooled slightly, but demand hasn't disappeared, and in many areas remains strong due to the shortage of homes on the market."

Don't overlook the current level of market activity. If your house isn't listed, it won't be seen by the numerous buyers who are actively looking to make a purchase right now. Contact us to Make a Great Move.