Foot traffic and future home sales have a strong correlation. SentriLock, LLC. provides NAR Research with monthly data on the number of showings.
Foot traffic in the area covered by the North Shore-Barrington Association of REALTORS® (Chicago, IL) fell 6% over the 12-month period ending in February of 2013. This decline in year-over-year traffic was the first in 13 months. However, this decline was from February 2012, when traffic surged 60% relative to February of 2011. The soft early spring foot traffic figures belie the fundamental strength as it is compared to a remarkably strong early 2012 market.
Foot traffic suggests that sales are likely to remain strong this season, driven by record mortgage rates, stable job growth, and resurgent buyer confidence.
Ken Fears is the Manager of Regional Economics and Housing Finance Policy. He focuses on regional and local market trends found in the Local Market Reports and the Market Watch Reports . He also writes on developments in the mortgage industry and foreclosures.