The spring housing market has seen surprising levels of activity this year. Despite affordability challenges and a limited inventory of homes for sale, buyer demand remains strong and continues to grow.
One indicator of the active buyer interest is the increase in showing traffic. The latest data from the ShowingTime Showing Index, which measures buyers actively touring homes, reveals a higher number of people looking at homes compared to the pre-pandemic period (refer to the graph). Although the current showing traffic may not match the frenzy of the past few years, there are still many interested buyers exploring available homes.
You might wonder why buyers are so active despite higher mortgage rates compared to last year. One significant factor is the robust growth of the job market. Despite concerns about inflation, the Federal Reserve raising the Federal Funds Rate, and talks of a potential recession, the job market is proving to be stronger than expected (see graph). The Bureau of Labor Statistics reports consistent monthly job growth, with April surpassing expert projections by creating 88,000 more jobs compared to March. This positive trend indicates a growing job market.
Another encouraging factor is the near all-time low unemployment rate. Despite expectations that low unemployment rates would increase due to inflation-fighting efforts, the rate has dropped to 3.4%, a 50-year low (refer to the graph). With many individuals steadily employed and financially stable, they have the ability to seriously consider homeownership.
What This Means for Sellers If you are considering selling your house this year, the current market with active buyers is highly advantageous. Increased buyer interest is expected when you list your home, especially considering the low inventory of available homes for sale.
To navigate the selling process successfully, your best resource is an experienced real estate agent. They can assist you in pricing your house appropriately, managing offers, negotiating effectively, and minimizing stress and hassle.
Bottom Line: There is a substantial pool of buyers actively searching for homes that meet their needs. The strong job market and stable incomes of many individuals contribute to their serious consideration of homeownership. To take advantage of this market and list your house, let’s connect and discuss your options.
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