Over the years, I have heard so many predictions about the real estate market that have never come true. Case in point are the predictions that the 2019 real estate market would be a disaster. Some experts even went so far as to believe that we might experience a housing crash like the one that occurred during the last decade.
Well, the numbers are starting to come in and according to two separate reports, buyer demand has dramatically increased over the last 3 months (March data is not available yet) leading into this spring buyer’s market.
Both the Showing Time Index (1) and the National Association of Realtors (NAR) Buyer Traffic Index (2) show that buyer demand has increased in each of the last 3 months.
According to the National Association of Realtors’ Economists Outlook Blog, purchasing a home has become more affordable, which has led to this increase in buyers demand. The combination of slower home value appreciation and lower mortgage rates, the income needed to make an affordable mortgage payment on a median-priced home with 10% down and a 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.
So, now, it appears the spring market is going to be much stronger than many had projected. Whether you are selling or buying this year, this is great news.
If you want to talk more about taking advantage of the great spring market in our area, feel free to reach out to me.
- The ShowingTIme Showing Index 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.
- The National Association of Realtors Buyer Traffic Index is compiled from a monthly survey of Realtors where NAR asks respondents “Compared to the same month last year, how would you rate the past month’s traffic in neighborhood(s) or area(s) where you make most of your sales? NAR complies the responses into an index, where an index above 50 indicates that more respondents reported “stronger” traffic than “weaker” traffic.