As a homeowner, you may be considering a move and wondering if it's the right time to sell your house. Fortunately, there's some positive news: despite the increased mortgage rates, the level of buyer interest is on the rise.
The graph below displays data from the latest ShowingTime Showing Index, which measures the level of buyers currently touring homes and gives us a clearer picture of just how much buyer demand has risen in recent months.
The graph clearly indicates a marked increase in buyer traffic during the first two months of 2023. This is likely due to the fact that the shortage of available homes on the market compelled potential buyers to continue their search even during the colder months.
To help tell the story of why the latest report is significant, let’s compare foot traffic this February with each February for the last six years (see graph below). It shows this was one of the best Februarys for buyer activity we’ve seen in recent memory.
The graph depicts that the highest February buyer traffic was observed in 2021 and 2022 (green bars) over the last six years, however, it's noteworthy that these were extraordinary years for the housing market. Therefore, a comparison of February 2023 with pre-pandemic years (which are considered more typical) shows a significant surge in buyer activity this year.
The increase in mortgage rates during February makes the surge in buyer traffic even more remarkable. Despite the Freddie Mac 30-year fixed mortgage rate rising from 6.09% during the week of February 2nd to 6.50% in the week of February 23rd, the number of potential buyers actively searching for a home continued to grow.
Jeff Tucker, Senior Economist at Zillow, says the increased buyer activity could continue:
“More buyers will keep coming out of the woodwork. We always see a seasonal uptick in home shoppers in March and April . . .”
If you're planning to sell your house, the continued presence of active buyers in the market this year should be an optimistic indication. It implies that potential buyers are actively seeking a home and could be interested in yours. Collaborating with a real estate expert to put your property up for sale now can help you showcase your home to enthusiastic buyers who are searching for their dream home.
Bottom Line
The increase in foot traffic is a positive development for the current housing market and serves as a clear indication that buyers are actively seeking to purchase a home, despite the higher mortgage rates. If you're considering selling your house, it's advisable to team up with a real estate expert to ensure that you navigate the selling process with ease.
