What Buyer Activity Tells Us About the Housing Market
Liz Kroft | March 20, 2023
Liz Kroft | March 20, 2023
Though the housing market in the California Bay Area is no longer experiencing the frenzy of a year ago, buyers are showing their interest in purchasing a home. According to U.S. News:
“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains stronglargely due to the shortage of homes on the market.”
That activity can be seen in the latest ShowingTime Showing Index, which is a measure of buyers actively touring available homes (see graph below):
The 62% jump in showings from December to January is one of the largest on record. There were also more showings in January than in any other month since last May. As you can see in the graph, it’s normal for showings to increase early in the year, but the jump this January was larger than usual, and a lot of that has to do with mortgage rates. Michael Lane, VP of Sales and Industry at ShowingTime+, explains:
“It’s typical to see a seasonal increase in home showings in January as buyers get ready for the spring market, but a larger increase than any January before after last year’s rapid cooldown is significant. Mortgage rate activity this spring will play a big role in sales activity, but January’s home showings are a positive sign that buyers are getting back out there . . .”
Locally in the California Bay Area the market also saw a jump in pending sales between December and February. This reflects the number of homes that went into contract showing a rise in buyer demand.
It's important to note that mortgage rates hovered in the low 6% range in January, which played a role in the high number of showings. What does this mean? When mortgage rates eased, buyer interest climbed. The jump in home showings early this year makes one thing clear – while rates may be volatile right now, there are interested buyers out there, and when mortgage rates are favorable, they’re ready to make their move.
Stay up to date on the latest real estate trends.
Buying
The real estate market is constantly evolving, and the way people buy homes is no exception. With technological advancements, shifts in buyer preferences, and changes … Read more
Selling
Discover the real estate magic that filled open houses with 26 groups in just one weekend, surpassing the Scotts Valley average of 31 days on the market. Explore the s… Read more
Market News
Have you seen headlines talking about the increase in foreclosures in today’s housing market? If so, they may leave you feeling a bit uneasy about what’s ahead. But re… Read more
Selling
Boutique real estate excellence in Santa Cruz County and Monterey Bay. Sol Property Advisors combines local charm with national and global reach, offering personalized… Read more
Family
Life events can have a major impact on what you need from your home, and retirement is one of the biggest changes many of us face. This period of your life can mean do… Read more
Selling
Unlock success in today's dynamic real estate market with expert seller strategies for attracting buyers today. Navigate market shifts, adapt to changing buyer needs, … Read more
Buying
Pondering the prospect of using your 401(k) for a home down payment? Our latest blog explores the implications, providing insights into the potential risks and viable … Read more
We're thrilled to introduce you to the latest member of our real estate family, Guillermo Guadron – your dynamic partner with a rich tapestry of experience.
Market News
If you've been keeping up with recent articles on our blog and social media, you're likely already aware that today's real estate market can offer incredible opportuni… Read more
You’ve got questions and we can’t wait to answer them.