The real estate market is experiencing a significant rebound from the late 2022 lows. According to the ShowingTime Showing Index, buyer showings are up more than 70% from the 2022 low, indicating a resurgence in buyer activity. This revitalization of the market brings multiple offers, bidding wars, increased competition for buyers, and lines at open houses. Let’s take a closer look at what this means for both buyers and sellers in the current market.
Buyer Activity on the Rise
When comparing February 2023 data to pre-pandemic years, this year marks a clear increase in buyer activity. Several factors could be contributing to this surge, extremely low inventory, relatively strong job security in many sectors, and the desire to move closer to family and friends. As a result, demand for homes is outpacing supply again, creating an increasingly competitive market.
Implications for Buyers
With competition heating up this spring, buyers need to be prepared to act quickly and decisively when they find a property they love. Here are some tips for navigating this competitive market:
- Get pre-approved for a mortgage: This shows sellers that you’re a serious buyer and can help you stand out from the competition.
- Work with an experienced real estate agent: They’ll have the expertise to guide you through the process, negotiate on your behalf, and help you find the perfect home.
- Be flexible with your requirements: In a competitive market, you may need to compromise on certain features to secure a property.
- Be prepared for multiple offers and bidding wars: This may mean offering above the asking price or providing a larger down payment to show your commitment.
Implications for Sellers
For sellers, the increase in buyer activity presents an opportunity to sell their homes for top dollar. Here are some strategies to maximize the benefits of this seller’s market:
- Price your home competitively: Work with a real estate agent to determine the best listing price based on comparable properties in your area.
- Prepare your home for showings: Make necessary repairs, declutter, and stage your home to make it as appealing as possible to potential buyers.
- Be ready for multiple offers: Work with your agent to review offers and select the best one, considering not only the price but also contingencies and the buyer’s financial qualifications.
- Be prepared to move quickly: With homes selling fast, it’s essential to have a plan in place for your next move.
The surge in buyer showings is a clear indicator that the real estate market is back on track. As competition increases, it’s essential for both buyers and sellers to be prepared and have a clear strategy in place. By working with experienced real estate professionals, you’ll be able to navigate this competitive market and achieve your homeownership or selling goals.