What does buyer activity tell us about the housing market?

U.S. News reports that although the housing market is not experiencing the same frenzy as a year ago buyers are still showing interest in buying a home. U.S. News reports that although housing markets have experienced a slight cooling, demand is still strong and many areas remain under-supplied. The latest ShowingTime Showing Index shows this activity. It measures the number of buyers actively touring homes (see graph below). This index is the most recent to date. It shows that the 62% increase in showings between December and January is the largest ever recorded. In January, there were more showings than any other month since May. The graph shows that showings increase in January, which is normal. However, the jump in January was much larger than usual due to mortgage rates. Michael Lane, ShowingTime+’s VP of Sales and Industry, says: “It’s normal to see a seasonal rise in home showings in January, as buyers get ready to enter the spring market. However, this January’s increase was much greater than any January before last year due to the rapid cooling. The spring mortgage rate activity will play a major role in sales activity. However, January’s home shows are a positive sign that buyers have returned to the market. . “It is important to note that January saw mortgage rates hovering in the low 6% range, which contributed to the high number showings. What does this mean? Buyer interest rose when mortgage rates fell. One thing is clear: although rates are volatile right now, there are still interested buyers. And when mortgage rates are favorable they are ready to make their move. Bottom Line: An increase in home showings in January is a sign that buyers are interested in purchasing a home. You may be thinking about selling your house. Talk to your agent. Click Here to learn about the newest feature of KCM, Personalized Posts.