The late fall and winter months, which typically bring along a “slow” season of sorts within the industry, seem to be making little difference on homebuyer interest in 2020.
Each month, ShowingTime releases their Showing Index which tracks the average number of appointments received on active U.S. house listings. The most recent index (for the month of October) notes:
“The Showing Index reported a 60.9 percent jump in nationwide showing traffic year over year in October, the sixth consecutive month to see an increase over last year.”
Here’s the breakdown of the latest activity by region of the country compared to the same month of 2019:
- The Northeast increased by 65.5%
- The West increased by 64.7%
- The Midwest increased by 55.7%
- The South increased by 54.7%
If the trend continues, the industry should see growth for November and December appointments, too.
Why is the traffic so active?
The pandemic put transaction plans on pause for many earlier this year. Buyers, however, are in the market and making moves well past the typical busy homebuying seasons of spring and summer.
One of the main reasons buyer traffic has continued to soar in the second half of 2020 is how dramatically mortgage rates have fallen compared to throughout 2019. According to Freddie Mac, the average mortgage rate last December was 3.72%. Today, the rate is over a full percentage point lower, sitting at a rate of 2.67% for the week ending 12/17/20.
While the seller market remains strong with low inventory, record setting mortgage rates continue to create enticing opportunities for buyers. Connect with them to understand the nuances between cost and affordability to see the dream homes that might be within reach.