If you’re thinking about selling your home, you may be worried about the state of the market with rising mortgage rates. You may think that buyers are holding back from buying a home because of the higher mortgage rates. However, you’ll be surprised to learn that the latest data shows that there are still plenty of buyers out there and they’re purchasing homes today! Despite the rise in mortgage rates, buyers are still active and accepting higher rates as the new reality. In this blog post, we’ll take a closer look at the data to prove that there’s no need to be worried about selling your home!
The ShowingTime Showing Index is a great measure of buyers touring homes. The latest data shows how active buyers have remained compared to previous years. The graph below uses the latest June 2023 numbers and compares them to the same month in the last normal years:
As you can see from the graph, buyers are still very active in the market. In fact, they’re a lot more active when compared to the norm! This data is great news for anyone who is thinking about selling their home. Despite the higher mortgage rates, buyers are still out there and actively looking.
But you may be wondering, why are buyers still active in the market even with the higher mortgage rates? Well, Danielle Hale, Realtor.com’s Chief Economist, explains that buyers are adapting to the new reality of higher mortgage rates. They understand that although rates are high, they’re still lower than what they were a few decades ago, making it a good time to buy a house.
“Interest rate hikes continue to further cut into buyers’ purchasing power, although they appear to have adapted to the higher mortgage rate environment . . .”
Another factor that’s contributing to the active buyer market is the low inventory of homes available. With fewer homes on the market, buyers are becoming more competitive and willing to invest in a property, even with higher mortgage rates. Simply put, when there’s a limited number of homes available on the market, buyers are more willing to compete for them.
One thing to bear in mind is that with the current rise in mortgage rates, buyers are more motivated to buy a house now before the rates go up even higher. This means that if you’re thinking about selling your home, it’s actually a great time to do so! The active buyer market and high demand for homes mean that you could potentially sell your home for a great price in this market.
In conclusion, don’t be worried about selling your home in the current market with the rising mortgage rates. The latest data shows that buyers are still active, competing to buy their dream homes. With the limited number of homes available on the market, buyers are quick to act, making it a great time for sellers. So if you’re thinking about selling your home, take advantage of this active market and sell for a great price. Don’t hesitate, your dream buyer could be out there waiting for your home to be listed!
