If you’re curious if your house will sell in today’s market, don’t worry – you’re not alone. Many homeowners are wondering the same thing as they watch the news and see headlines about the housing market cooling and buyer demand moderating. Don’t panic though! The truth is that buyer demand hasn’t disappeared, it’s just eased from the peak intensity we saw over the past two years. In this blog post, we’ll take a closer look at buyer demand then and now to help ease your mind.
During the pandemic, mortgage rates hit record lows and that spurred a significant rise in buyer demand. According to the National Association of Realtors’ (NAR) Housing Opportunities and Market Experience Survey, buyers’ interest in purchasing a home reached an all-time high in August 2020 with 74% of respondents saying they were likely to buy a home within the next six months. This was up from 67% in July and 63% in June. The latest data from ShowingTime confirms this trend (see graph below):
Fast forward to today and we’re seeing a different picture. While buyer demand is still strong, it has moderated from those highs we saw last summer. In NAR’s latest survey, released in February 2021, 57% of respondents said they were likely to buy a home within the next six months. This is down from 61% in January and 63% in December.
What’s behind this shift?
A few things:
– Mortgage rates have risen from their record lows and are now at their highest levels since early 2020.
– The pandemic has caused many people to reassess their housing needs and priorities. Some are no longer interested in buying a home, at least not right now.
– The supply of homes for sale remains tight, which is limiting choices for buyers and keeping prices elevated.
If you’re thinking of selling your home this year, don’t let headlines about the market cooling scare you off. Yes, buyer demand has eased from last summer’s highs but it’s still strong by historical standards. With interest rates expected to rise further in the months ahead, now is a good time to list your home for sale. To get the full picture of where today’s demand stands, let’s look at the July data for the past six years (see graph below):
If you’re not sure whether now is the right time for you to sell, talk to a local real estate agent. They can provide you with information about recent home sales in your area and help you determine if selling now makes sense for you.