As interest rates remain higher than this time last year, many people believe that buyers have jumped out of the market. Homeowners in response, have decided not to put their home on the market as they fear they won't be able to sell their home or will have to sell well below the last couple of year's hot Dallas real estate market. It's true that the high frenzy market in the past is not the same this year, but looking at recent home buyer showing activity, tells us that home buying demand is increasing. According to U.S. News:
Housing markets have cooled slightly in response to higher interest rates, but demand certainly hasn't disappeared. In fact, it remains strong in the Dallas area where there is a shortage of homes available.
In reviewing the ShowingTime Showing Index beginning in January, there was a jump in home buyers showing activity:
The 62% jump in showing activity from December to January is the largest jump in history. The graph also shows that there were more showings in January compared to any other month since last May. Historically, showings always increase early in the year but this year the jump was larger than usual. Experts tend to agree this means that buyers have grown more accustomed to today's interest rates and are now back to house hunting.
Remember that interest rates back in January were hovering in the 6% range, which likely peaked buyer activity as interest rates eased. While rates may continue to be volatile this year, home buyers are ready to make a move when rates are favorable. Lenders have responded by offering "rate buydown" products and home builders are also offering great buyer incentives to further entice home buyers.
Since pre-pandemic times, right now is a great time for homeowners considering selling a home to take advantage of increasing home buyer demand. For home buyers, while housing inventory remains limited, it is greater than what we had in the last couple of years and lender and home builder incentives are hard to pass up. Reach out today to learn more about your home buying or home selling opportunities. Don't let this be the time you wish you had acted sooner.