With the holiday season in full swing shoppers are out there buying gifts for their friends and families. This year though we are seeing that homebuyers are still shopping this holiday season. Here is why we are seeing an increase in homebuyers this holiday season than what you would typically see for a normal winter slowdown and what this means if you are planning on selling your home.
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 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 this time last year:
- Northeast increased by 65.5%
- West increased by 64.7%
- Midwest increased by 55.7%
- South increased by 54.7%
Since ShowingTime doesn’t break the date down by each state. Here in Connecticut we can confirm from the latest market report that homebuyer demand is up by looking at the home sales from last month..
In Connecticut single family home sales are up +46.4% compared to last November and up +17.7% year to date.
In Southbury, CT single family home sales were up +342.9% (31 single family homes sold) compared to last November (7 single family homes sold) and up +27.9% year to date.
Why is the traffic so active?
The health crisis put homebuying 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. Also, with shutdowns that were place in cities like New York City. We have had an increase of homebuyer traffic coming from there as well.
One of the main reasons buyer traffic has continued to soar in the second half of 2020 is how dramatically mortgage rates have fallen. According to Freddie Mac, the average mortgage rate last December was 3.72%. Today, the rate is a full percentage point lower.
There are first-time buyers, move-up, move-down buyers and out of state buyers actively looking for the home of their dreams this winter. If you are thinking of selling your house in 2021, you don’t need to wait until the spring to do it. Your potential buyer is very likely searching for a home in your neighborhood right now.
I am committed to the real estate market to make sure you have all the information you need to make your next move. Review all the information I have put together for you here on my website. If you would like more information on any issues of concern as well please contact me. I look forward to hearing from you. Have a great day.