The housing market is anything but predictable right now. While spring and summer are typically the busiest seasons for buying and selling, this year is already shaping up to be an unconventional one. A recent survey from Bright MLS, surveying over 1,000 agents, reveals the complex dynamics agents are currently navigating.

The Shift in Buyer Behavior

Buyers are facing significant hurdles, leading to longer search times and increasing hesitation:

  • Pausing the Search: A high percentage of agents (73%) reported having a client pause their home search in the last six months. High borrowing costs and competition from cash-heavy buyers are the most significant obstacles.
  • Extended Search Periods: Affordability challenges and multiple offer situations are extending timelines. About 28% of agents reported that their buyers spent 3–6 months searching, while 24% said their clients spent more than six months.
  • Multiple Bids: On average, buyers who successfully reached the closing table in April bid on nearly three different homes before securing one.

Seller Satisfaction vs. Hesitation

Despite the frustrations on the buying side, sellers who list their homes are still generally finding success, though hesitation remains high.

Seller Satisfaction and Concessions

  • High Satisfaction: 84% of agents reported that their sellers were satisfied with the price they ultimately received in April.
  • Concessions are Common: Even in a competitive market, concessions are frequently used to close deals:
    • 34% provided a credit for repairs.
    • Nearly 20% assisted with closing costs.
    • 16% offered a home warranty.

Hesitant Sellers

  • Reluctance to Move: A substantial 32% of agents had sellers who decided not to sell. The main reasons cited were difficulty in finding a new home and reluctance to give up the favorable mortgage rates they currently hold.

Mixed Market Outlook for the Next Quarter

Agents have mixed views on future activity, suggesting continued moderate volatility:

  • About 46% of agents expect buyer and seller activity to be average over the next three months.
  • Buyer Activity: Only 40% anticipate high or very high buyer activity (down from 47% last month), suggesting cooling expectations.
  • Seller Activity: On the listing side, 43% of agents expect seller activity to be low or very low, highlighting the ongoing inventory challenge.

Stay tuned as we navigate these unpredictable times, offering insights and updates to help you make informed decisions in this dynamic market.