As the winter season fades and spring approaches, the real estate market is heating up, and we’re here to help you stay ahead of the curve with these quick market updates.
Largest Jump in Home Showings
Despite the housing market cooling off compared to a year ago, there are still robust signs of buyer interest in purchasing a home. The ShowingTime Showing Index, which measures the number of active home tours by potential buyers, reveals a remarkable 62% surge in showings from December to January. This increase is one of the largest on record, and while it’s typical to see a rise in showings at the beginning of the year, this year’s jump was exceptional.
These market indicators suggest that there are still plenty of opportunities for both buyers and sellers to participate in the current real estate landscape. Michael Lane, VP of Sales and Industry at ShowingTime+, provides further insight:
“It’s typical to see a seasonal increase in home showings in January as buyers get ready for the spring market, but a larger increase than any January before after last year’s rapid cooldown is significant. Mortgage rate activity this spring will play a big role in sales activity, but January’s home showings are a positive sign that buyers are getting back out there . . .”
Foreclosure Activity Declines From January
ATTOM recently published its U.S. Foreclosure Market Report for February 2023. According to the report, the number of U.S. properties with foreclosure filings, including default notices, scheduled auctions, and bank repossessions, stood at 30,528, indicating a 3% decline from the previous month. Rob Barber, the CEO of ATTOM, reported that there was a notable shift in foreclosure activity during February. This is significant because it marks the first time in 21 months that there has been a halt in the steady increase of foreclosure rates. He explains:
The numbers don’t yet show a clear trend toward fewer foreclosures, partly because February is a short month. But with historically high levels of home equity flowing from a decade of rising values, we may be seeing a growing number of delinquent mortgage payers with at least the option to sell before facing foreclosure.”
Bank Closures Spur Jump in Mortgage Demand
Realtor.com reports on the recent increase in mortgage demand, particularly in the wake of several bank closures and a decrease in mortgage rates. According to data from the Mortgage Bankers Association, mortgage applications have risen by 2.9% from the previous week. Citing data from MBA, the article notes a 2.9% increase in mortgage applications over the previous week, with refinancing accounting for nearly 70% of total mortgage activity. Realtor.com suggests that these trends are indicative of a strong housing market, despite the ongoing challenges presented by the COVID-19 pandemic.
Sources: Realtor.com, Keeping Current Matters, ATTOM Data & Mortgage Bankers Association
