This year's spring housing market has defied expectations, proving to be remarkably active despite affordability challenges and limited available homes for sale. Buyer demand remains robust and is even growing stronger.
A clear indication of the heightened interest from potential buyers is the increase in showing traffic. Data from the latest ShowingTime Showing Index, which measures the number of buyers actively touring homes, reveals a notable surge in home visits compared to pre-pandemic levels. While the current traffic is slightly lower than the frenzy experienced in the past couple of years, it still indicates a significant number of interested buyers actively exploring available homes.
The question arises: Why are buyers so active despite higher mortgage rates compared to last year?
The Job Market Is Thriving at an Unexpected Pace
Despite concerns about inflation and the Federal Reserve raising the Federal Funds Rate, the job market remains remarkably strong, with signs of continuous growth. Monthly reports from the Bureau of Labor Statistics (BLS) consistently show the addition of new jobs to the U.S. market, with the numbers exceeding expert projections. For example, April witnessed the creation of 88,000 more jobs than in March, demonstrating the ongoing growth in the job market.
Unemployment Is at a Historical Low
Despite expectations of an increase in unemployment rates due to the Federal Reserve's actions, the reality has been quite the opposite. The unemployment rate has dropped to a 50-year low of 3.4%. This low rate indicates a large number of people are gainfully employed and financially stable, making homeownership a feasible option for them.
What This Means for Sellers
If you're considering selling your house this year, the presence of active buyers in the market is excellent news. Your home is likely to attract increased interest when you list it, especially considering the limited inventory available for sale.
To start the selling process, it's essential to seek the guidance of an experienced real estate agent. They can help you price your house appropriately, manage the offers you receive, negotiate effectively, and reduce your stress during the selling process.
The current real estate market boasts a considerable number of eager buyers in search of a home that suits their needs. This is largely due to the robust job market, with many people enjoying stable incomes, making homeownership a viable option. To take advantage of this active market and sell your property, reach out to a trusted real estate agent who can guide you through the process.