Low Inventory and High Prices Cause Showing Traffic to Level Off in Parts of the U.S.
Homebuyer showings decline in the West and Northeast, cool in the Midwest; South increases
West (-6.5 percent) and Northeast (-2.0 percent) regions show multi-month, year-over-year declines in showing activity, as the overall U.S. ShowingTime Showing Index® for July 2018 increases slightly from July 2017.
South Region (+4.6 percent) exhibits a year-over-year increase in showing activity for the 10th consecutive month and Midwest Region (+0.6) for the fifth consecutive month.
ShowingTime combines showing data with findings from its MarketStats division to provide a set of benchmarks that track demand for active listings throughout the country.
As high home prices and a continued inventory shortage in many markets have contributed to the residential real estate industry forecasting a slowdown, the July 2018 ShowingTime Showing Index® revealed waning showing traffic in some regions of the U.S.
Showing activity throughout the country increased by 0.3 percent year over year in July, the third consecutive month that the U.S. ShowingTime Showing Index recorded buyer interest deceleration compared to the previous year. The June 2018 figures revealed a 0.0 percent change in showing traffic from 2017, while May showed a 1.2 percent year-over-year increase. The 12-month average year-over-year increase was 4.6 percent.
The slowdown has been particularly apparent in western markets where inventory remains tight, ShowingTime Chief Analytics Officer Daniil Cherkasskiy said, as showing activity in the West Region has declined for six consecutive months and was down 6.5 percent compared to last year at this time. The Northeast Region has also experienced a run of consecutive monthly year-over-year decreases, with showing activity declining by 2.0 percent compared to last year.
“The ShowingTime Showing Index has been forecasting a slowdown for the past few months due to showing activity remaining relatively steady or lower compared to last year, which has been in large part affected by lower inventory in several major markets in the West Region,” Cherkasskiy said. “That trend now appears to be impacting some areas of the Northeast, as well.”
Buyer interest remains high in the South Region, however, which has experienced year-over-year increases for 10 straight months and saw showing traffic increase 4.6 percent compared to last July. The Midwest Region showed a slight 0.6 percent year-over-year increase.
The ShowingTime Showing Index, the first of its kind in the residential real estate industry, is compiled using data from property showings scheduled across the country on listings using ShowingTime products and services, which facilitate more than 4 million showings each month.
Released on or around the 20th each month, the Showing Index tracks the average number of appointments received on an active listing during the month. Local MLS indices are also available for select markets and are distributed to MLS and association leadership.
ShowingTime is the leading showing management and market stats technology provider to the residential real estate industry, with more than 1.2 million active listings subscribed to its services. Its MarketStats division provides interactive tools and market reports for MLSs, associations, brokers, agents and other real estate companies, along with recruiting software that enables brokers to identify top agents. Its showing products take the inefficiencies out of the appointment scheduling process for real estate agents, buyers and sellers. ShowingTime products are used in more than 250 MLSs representing over 1 million real estate professionals across the U.S. and Canada.