Birds are chirping, flowers are blooming, the sun is shining… but are homes selling? Usually the warmer weather brings with it a surge in home sales as more buyers enter the market. Perhaps you have been waiting for the seasons to change and for buyers to enter the market so you can sell. This year, with the real estate market constantly changing, no one’s been quite sure what to expect.
Here’s what experts are saying about the spring homebuying season this year:
Existing home sales are on the rise.
In February, we saw a 14.5% jump in existing home sales. This was the largest monthly percentage increase since July 2020. Sales are still lower than this time last year, but they’re expected to increase this spring, according to Dr. Jessica Lautz, Deputy Chief Economist and Vice President of Research at the National Association of Realtors (NAR).
Inventory is low.
We’re not talking 2021 levels of scarcity, but inventory is not keeping up with demand. NAR Chief Economist Lawrence Yun notes that “the lack of housing inventory is a major constraint to rising sales,” and “limited housing supply is simply not meeting demand nationally.” He goes on to say that this should moderate during the second half of the year.
Mortgage rates are high, but are going down.
Following the Fed’s signaling of a potential stop to rate hikes, mortgage rates have lowered slightly. If the Fed does not announce a raise after their next meeting in June, we expect to see mortgage rates fall further. This will be a slow change rather than a sudden drop.
Local trends matter.
It’s important to know what’s going on where you live, as real estate value trends are different in different areas. Some regions are experiencing real estate prices going up, while others are seeing them fall. These changes are gradual, and we do not expect to see dramatic drops anywhere; overall, real estate is a solid investment that retains its value.
High equity puts homeowners in a great position.
If you’ve owned your current home for several years, you’ve likely benefited from record amounts of equity. Equity is the value of your home minus what you owe on the loan, so the large home value increases of the last few years have raised most people’s equity significantly. This is great news, because high equity sets you up for success when you’re looking to buy your next home.
Be ready to move fast!
Odeta Kushi, deputy chief economist at First American Financial Corporation, says that buyers should be ready to move fast. This year won’t be as extreme as 2021, “but given that it will still be a seller’s market, [buyers will] still likely have to move fast to keep up with that market velocity.” This means that, in order to get your dream home (and not be paying two mortgages), you may need to sell your house fast. If this is your situation, MarketPro Homebuyers is the best solution. We buy houses in any condition with a fast, simple sale.
Work with MarketPro:
We’ll give you a fast cash offer for your current home just as it is now. We buy houses with no repairs, no upgrades, no inspection, no commissions or fees. You can even choose your exact closing date. Our team will walk you through your quote, including a review of what your home would likely bring on the open market.
When we buy houses, our goal is to make the process easy and stress-free for you. If you’re in Washington, D.C., Maryland, Virginia, Pennsylvania or Florida, contact us today for a same-day, no-pressure quote.