Home sales are a good way to measure how many buyers are active in the housing market. But home sales only count the buyers who've found a home and closed the sale. They don't measure the buyers who are looking but haven't yet found a home to purchase. That's why a recent analysis of how many scheduled showings the typical listing receives is an interesting look at where the housing market is right now.
Showings can provide an even more accurate snapshot of how much buyer interest exists since they also cover the buyers who looked but didn't buy. According to the numbers, scheduled showings have fallen from last year. In fact, showing activity was down almost 17 percent in July, with only one metro area averaging double-digit showings per listing. Last year at this time, there were 40 cities with double-digit averages.
The drop in demand is significant but expected. It's further evidence that the housing market continues to normalize after years of imbalance – when the number of buyers far outpaced the number of available homes. Naturally, with inventory improving and buyer demand cooling, the market is becoming better balanced, which means less stress and competition for home buyers looking for a house to buy this fall.
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