With the challenges 2020 presented, many predicted that the housing market would suffer as well. But, despite the pandemic, the real estate market has remained strong. The ShowingTime Showing Index and data from the National Association of Realtors confirm that buyer demand is high, homes are selling quickly, and sellers are receiving strong offers. In this blog post, we’ll dive into the data and explore what this means for anyone looking to buy or sell a home in the current real estate market.
The ShowingTime Showing Index is a measure of how frequently buyers are touring homes. The graph below uses that index to show buyer activity over the past eight Octobers:
In the graph, the ‘unicorn’ years are shown in pink. You can see demand has dipped some since then. That’s in response to higher mortgage rates. But, when you compare 2023 to the blue bars on the left that represent the last normal years in the market (2018-2019), you can tell buyers are still more active than the norm.
According to the latest data from the National Association of Realtors (NAR), sellers are receiving an average of 2.5 offers on their houses. Let’s look at how that compares to recent years (see graph below):
It’s true that’s fewer than the number of offers sellers were receiving during the ‘unicorn’ years (shown in pink). But compared to last year, the number is up slightly. And it’s higher than it was in the more normal, pre-‘unicorn’ years in the housing market too.
To help showcase that homes for sale are still going quickly, let’s look at data from NAR on the median days on market for this same time of year from 2018 through now (see graph below):
As the graph shows, this year homes are sitting on the market only slightly longer than they were during the frenzy of the ‘unicorn’ years. And compared to the last normal years in the market, homes are still selling much faster than they did back then. That’s good news for sellers looking to move!
The demand for homes is not just limited to one type of property. The luxury market is experiencing similar demand. According to recent data from the Institute for Luxury Home Marketing, luxury properties ($1M+) are selling at a much higher rate compared to 2019. The data shows a 46% increase in luxury home sales over the last year.
As we’ve highlighted, the above data confirms that the real estate market remains strong and now may be an excellent time for buyers and sellers to engage. Whether you’re looking to move to accommodate a changing work environment or simply want a new space, the current market offers sound opportunities. At the end of the day, understanding the data is the first step towards navigating a successful real estate transaction. Remember, As AI language models, we can simplifies everything.