2023 has started on a positive note for the estate market, with various signs indicating a rebound in activity. The recent surge in weekly mortgage applications, with a 25% increase two weeks ago and an additional 7% increase this past week, is a clear indication that home buyers are becoming more confident in the market. Moreover, mortgage rates are continuing to drop to 4-month lows, making it more affordable for potential home buyers to secure financing.
In addition to increased mortgage applications, there’s also been an uptick in buyer interest, open house traffic, and offers. This can be seen as a sign that home buyers are once again starting to see the market as a viable option for purchasing a new home. Moreover, the last quarter of 2022 saw 42% of sellers giving concessions to buyers at the closing table, a 10-year high, further indicating a shift in market conditions.
Home builders are also feeling more confident about the market, with home builder sentiment improving for the first time in a year. This, in turn, will likely lead to increased construction activity and a greater supply of new homes on the market.
Another positive sign is the recent stabilizationizing of pending listings. In the fall, pending closings were down 30% in many markets, but over the last few weeks, pending listings have nearly remained flat year over year in most markets. This suggests that buyers are once again starting to engage in the market and making offers on homes.
In conclusion, the real estate market is showing positive signs of a rebound, with increased mortgage applications, buyer interest, and home builder sentiment all pointing to a more active market in 2023. While there may still be some volatility ahead, the trend towards a more active market is encouraging for all involved.