Why Selling Your House Remain a Favorable Decision at Present
Suppose concerns about diminishing buyer demand in the wake of rising mortgage rates have been on your mind. In that case, recent data indicates that there are still numerous interested buyers in the market. While the housing market may not be as exuberant as it was during the 'unicorn' years, marked by soaring buyer demand, historically low mortgage rates, and unprecedented increases in home values, it is by no means stagnant.
Nationally, demand remains robust compared to the last normal years in the housing market, and many buyers are actively making their moves. The data below provides evidence of this ongoing activity.
Showing Traffic Is On The Rise
The ShowingTime Showing Index gauges the frequency of home tours by potential buyers. The graph below, using this index, illustrates buyer activity over the past eight October:
While demand has decreased since the 'unicorn years, attributed to higher mortgage rates, a comparison with the blue bars on the left representing the last normal years in the market (2018-2019) indicates that buyers are still more active than the norm.
However, showing traffic isn't the sole indicator of high buyer demand. The number of offers sellers receive and the average days homes spend on the market also tell a compelling story.
Sellers Are Still Garnering Multiple Offers
According to the latest data from the National Association of Realtors (NAR), sellers are receiving an average of 2.5 offers on their homes. Let's examine how this compares to recent years:
While this figure is fewer than the offers during the 'unicorn' years, it is slightly higher than last year and surpasses the levels in the more normal, pre-'unicorn' years in the housing market.
Homes Priced Right Are Selling Quickly
Sellers are not only consistently receiving multiple offers but are also witnessing fast sales, a direct consequence of strong buyer demand. According to Zillow:
"... low inventory levels are spurring surprisingly strong competition ... demand has remained resilient, and attractive, appropriately priced listings are moving quickly."
To illustrate that homes for sale are still moving rapidly, NAR data on the median days on the market from 2018 to the present shows:
This year, homes are spending only slightly more time on the market than during the frenzy of the 'unicorn' years, and compared to the last normal years, they are selling much faster. That's good news for sellers because it means there are eager buyers out there right now.
The window to sell your house while receiving multiple offers and achieving quick sales is still open. When you decide to sell, reach out to us to initiate the process.