Buyer Demand Surging as Spring Market Begins

Last fall, some predicted that the 2019 residential real estatemarket would be a disaster. There was even belief we mightexperience a housing crash like the one that occurred during thelast decade.

However, according to two separate reports*, buyer demanddramatically increased over the last three months, leading intothis spring buyers’ market (the March data is not yetavailable).

Both the ShowingTime ShowingIndex and the NationalAssociation of REALTORS Buyer Traffic Indexshow that buyerdemand has increased in each of the last three months.

Why the increase in demand? Increased buyingpower.

According to the National Association ofRealtors’ Economists’ OutlookBlog, purchasing a home has become more affordable, whichhas led to increased demand.

“Due to the combination of falling home prices andmortgage rates, the income needed to make an affordable mortgagepayment (mortgage no more than 25% of income) on a median-pricedhome with 10% down payment and 30-year fixed rate mortgagedecreased from $60,425 in June 2018 to $53,783 as of February 2019,and the difference of $6,642 represents a gain in buying powerbecause one can afford a home purchase at a lower level ofincome.”

Bottom Line

It appears the spring buyers’ market is going to be muchstronger than many had projected. Whether you are selling orbuying, this is important news.