February 2023 MBS Highway Housing Index

Homebuyer activity increased on lower rates and seasonal uptick.

MBS Highway’s February 2023 Housing Survey showed a significant pick-up in buyer activity. Importantly, this marked the second consecutive month of improvement. [Infographic below.]

57% of respondents characterized their local buyer activity as ‘Very Active’, ‘Somewhat Active’ or ‘Steady’, a dramatic improvement from just 23% in January 2023 and a low of 19% in November 2022.

Pricing pressure also abated, with only 53% of respondents experiencing ‘Moderate’ or ‘Significant’ listing price reductions, down from 74% in January 2023 and a high of 78% in November 2022.

With inventory levels still very low, the increased demand is leading to a resurgence of buyer competition in certain markets. 20% of respondents indicated that homes were “Selling Quickly with Multiple Offers”, up from just 4% in January 2023.

In the Northeast and Mid-Atlantic regions, nearly 50% of respondents said that homes were “Selling Quickly with Multiple Offers”. Respondents in the Southwest, West, and Southeast are experiencing the most pricing pressure, but even there, only 3–5% of respondents said they were seeing “Significant Price Reductions”.

“As we expected, easing inflation and falling mortgage rates are bringing real estate buyers out of hibernation. These February survey results clearly indicate a recovery in buyer activity, as well as less price reductions from sellers, which is much more than just a seasonal upswing,” said Barry Habib, MBS Highway Founder and CEO.