If you've been worried that rising mortgage rates dampened buyer demand, the numbers show that interested buyers are still very much active. Although the housing market isn't as feverish as the 'unicorn' years characterized by soaring buyer interest, historic lows in mortgage rates, and unprecedented home value appreciation, it’s still vibrant.
Nationally, demand remains high compared to the last typical years in the housing market. Here's the data supporting this:
Increased Showing Traffic
The ShowingTime Showing Index gauges buyer engagement with home tours. Comparing the current buyer activity to the 'unicorn' years (highlighted in pink), there has been a slight decline due to higher mortgage rates. However, when juxtaposed with the pre-'unicorn' years (2018-2019), it’s evident that buyer activity is still notably higher than the previous norm.
Offers Received by Sellers
Sellers are currently receiving an average of 2.5 offers on their properties, according to the latest National Association of Realtors (NAR) data. Although slightly fewer than the 'unicorn' years, it's higher than the previous year and the more typical years before the market boom.
Fast Sales for Well-Priced Homes
A result of robust buyer demand is that appropriately priced homes are selling swiftly. Low inventory levels have led to strong competition. According to Zillow, well-priced listings are moving quickly, reflecting the resilience of buyer demand.
To emphasize this, let’s examine the median days on market from 2018 to the present (see graph). Homes are spending only marginally more time on the market now than during the 'unicorn' years and are selling much faster than they did in the pre-'unicorn' market.
The current market still presents a favorable environment for sellers, with multiple offers and swift sales. When you’re ready to sell your property, engaging a local real estate agent will help kickstart the process and capitalize on the existing buyer enthusiasm.