Buyer Demand Surging as Spring Market Continues
Last fall, some predicted that the 2019 residential real estate market would be a disaster. There was even belief we might experience a housing crash like the one that occurred during the last decade.
However, according to two separate reports*, buyer demand dramatically increased over the last three months, leading into this spring buyersâ market (the March data is not yet available).
Both the ShowingTime Showing Index and the National Association of REALTORS Buyer Traffic Index show that buyer demand has increased in each of the last three months.
Why the increase in demand? Increased buying power.
According to the National Association of Realtorsâ Economistsâ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand.
âDue to the combination of falling home prices and mortgage rates, the income needed to make an affordable mortgage payment (mortgage no more than 25% of income) on a median-priced home with 10% down payment and 30-year fixed rate mortgage decreased from $60,425 in June 2018 to $53,783 as of February 2019, and the difference of $6,642 represents a gain in buying power because one can afford a home purchase at a lower level of income.â
Bottom line, it appears the spring buyersâ market is much stronger than many had projected. If you're planning on selling your home in 2019, NOW is the perfect time to list your home and gain maximum exposure in the busy spring market!
*The methodology behind the indices:
The ShowingTime Showing Index
âThe ShowingTime Showing IndexÂź tracks the average number of buyer showings on active residential properties on a monthly basis, a highly reliable leading indicator of current and future demand trends.â
The National Association of REALTORSÂź Buyer Traffic Index
âIn a monthly survey of REALTORSÂź, NAR asks respondents âCompared to the same month last year, how would you rate the past monthâs traffic in neighborhood(s) or area(s) where you make most of your sales?â NAR compiles the responses into an index, where an index above 50 indicates that more respondents reported âstrongerâ traffic than âweakerâ traffic.â
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