The MLS ShowingTime service provides a measure of how frequently buyers are touring homes. It is a precursor to offers and contracts. If you were not looking to buy a home, you would not be spending evenings and weekends touring homes, Agree? Buyer demand has NOT disappeared when mortgage rates went up, the data shows there are numerous interested buyers still out there. 2023 demand is the highest outside of the ‘unicorn years’. Here is the data to prove it. (graph below):
But showing traffic is not the only way to see buyer demand is still high. The number of offers sellers are receiving and the average days homes are on the market round out the story. According to the latest data from the National Association of Realtors (NAR), sellers are receiving an average of 2.5 offers on their houses. Again, the highest numbers in 2023 outside of the ‘unicorn years’. Days on market? Just 48 HOURS longer(graphs below):
What Does This Mean for Buyers?
Projected new listings are a positive sign. It means you have a steadier stream of options coming onto the market and more choices for your next home than you would have at the same time last year.
- Your monthly cost will be lower due to current lower interest rates which I have seen at 6.5% for conventional. That could be less as trends continue to show.
- You will still have stiff competition from other buyers, increasing the likeliness of higher bids, especially as mortgage costs decrease.
- You must have your loan approval fully updated and tight. You must know what your rate is so you know how much an offer will cost.
- You must get more focused on where, what, and when you want to buy.
- You must be ready to change your schedule to see a home just listed.
- You must be ready to make your best offer amount on any home that fits most of your needs and you can see yourself living there.
- You must be ready for an ‘offer not accepted’ response. Pick yourself up and keep going forward to the next.
What Does This Mean for Sellers?
Even though new listings are breaking seasonal norms, inventory is still well below any normal market, so prices are likely to stay strong.
- The average time to sell a home is just a few days more but still very quick.
- Buyer Demand is extremely high, thereby increasing your chances of receiving solid terms of sale.
- With less competition from other sellers than you’d see in a more typical year, your home has a better chance to be in the spotlight and attract eager buyers.
- Be ready for minor fixes and a boost in curb appeal if needed.
- Prepare your sales and pricing strategy with a market expert Realtor®. A NAR-certified Pricing Strategy Advisor (PSA), like myself, has specialized training and education to set your sale up for the most successful outcome.
Know you have not missed your time to sell. The stats show you should fare better now and into early 2024 than all other years outside of the ‘unicorns’.
Ready to talk more about your plans? Contact me at your earliest convenience.