Homebuyer Activity Shows Signs of Warming Up for Spring

By Articles, Buying, Keeping Current Articles April 10, 2023
pink flowers in the garden

The spring season appears to be warming up in housing as more and more buyers enter the market. And after rising mortgage rates sidelined so many buyers last year, that’s a good sign for sellers. Realtor.com has the latest:

“Spring is officially here, and like green shoots emerging from the bleak winter, new data suggests that more buyers are back in the market, although more subdued compared to a year ago.”

We know buyer activity is trending up because of mortgage purchase application data. According to Investopedia:

“A mortgage application is a document submitted to a lender when you apply for a mortgage to purchase real estate.”

That means the number of mortgage applications shows how many buyers are applying for mortgages. Put another way, an increase in mortgage applications means an increase in buyer demand – and as Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains, application activity started ramping up as mortgage rates fell steadily in March:

“Application activity increased as mortgage rates declined . . . recent increases, along with data from other sources showing an uptick in home sales, is a welcome development.”

In fact, we can see how mortgage rates have a direct impact on applications over time. As rates rose dramatically last year, applications fell in response (see graph below):

The recent uptick in mortgage applications, as well as the decline in mortgage rates, is good news for sellers because it means more buyers are actively looking for homes.

What This Means for You

Buyers are coming this spring, which is typically the busiest time of the year in real estate. And as Realtor.com tells us, if you’re a seller, you need to prepare:

“If homeowners are planning to sell in 2023, now is the time to get ready.”

The means working with a local real estate agent to maximize your home’s appeal and get it listed at the ideal price for your area.

Bottom Line

The housing market is warming up for spring. If you’re thinking about selling your house and taking advantage of this recent uptick in buyer activity, let’s connect.

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About the Author
Richard Wamsat
Richard Wamsat
Richard Wamsat is a Broker Associate and REALTOR with Coldwell Banker Realty in Irvine, California (CalDRE #01345167). Since 2002, Richard has represented clients throughout California in all price ranges, from first time homebuyers purchasing their first condo to seasoned investors buying and selling higher end properties. His current focus is on helping buyers and sellers in Orange County.

Richard bought his first home at nineteen and has worked in both Northern and Southern California markets, including the difficult years of the Great Recession when he negotiated with banks to help homeowners avoid foreclosure or get relief from underwater mortgages. That experience, combined with hundreds of successful closings since, gives his clients a practical understanding of how deals really get done in changing markets.

Committed to professional negotiation, Richard earned the Master Certified Negotiation Expert (MCNE) designation from the Real Estate Negotiation Institute, a member of the Harvard Program on Negotiation, along with additional credentials such as CNE, AHWD, CDPE, and SFR. Fewer than one percent of agents nationwide have achieved the MCNE designation, and Richard uses that training to structure offers, counteroffers, and terms that protect his clients’ interests without overpromising or relying on gimmicks.

Richard lives in Irvine with his wife, Brandy, and their fluffy white dog, Murphy. When you hire him, you get a calm, data driven advisor who takes the time to explain your options, walk you through the numbers, and help you make confident decisions about buying or selling a home in Orange County.