The spring season is upon us and you may be wondering if you should enter the market now or wait until fall when prices are typically lower. With the economy beginning to open up around the country and the vaccination becoming more available, experts claim to see strong sales and more inventory enter the market.
Buying demand is still unseasonably high while inventory and supply continue to be increasingly low. February showed that the inventory of homes for sale decreased by 48.6 percent, or 496,000 fewer homes for sale compared to last year. Experts saw new construction rise 20 percent due to the lack of available homes.
Mortgage rates saw a roller coaster of movement in the first weeks of the spring months causing a lot of concern for potential buyers. Since then, rates have held an average of just over three percent for the 30-year fixed mortgage rate. These rates are still historically low compared to the pre-pandemic averages. Even if rates continue to rise, it should be at a slower pace and is expected to stay at lower levels than what the market is used to. The low rates remain the biggest perk for buyers, providing them more purchase power. As more buyers take advantage of the low rates, more inventory is expected to emerge later in the spring.
Buyers are unafraid to support their homeowner needs and home sales are already skyrocketing for spring. If you are a first-time homebuyer, Millennial, or a city dweller looking to migrate to the suburbs, you may want to consider entering the market now, get the benefits of low rates in the short term, and the satisfaction of homeownership in the long run.
The main reason you may consider listing your home is that homebuyer demand is so high. Listed homes are getting over 50 percent or more requests from buyers compared to last year (ShowingTime). There simply aren’t enough available homes for sale to meet the number of buyers entering the market. Low inventory has been a consistent issue for years, but with almost 50 percent fewer homes available, homes are selling faster than ever before.
NAR reports that today, the average house is only on the market for about 21 days. Additionally, every home on the market had at least four offers or more. If you are listing a home, you have more of an advantage to get the best deal and help you have more buying power when looking for a new home.
Why this proves to be a seller’s market, more people are interested in buying. Whether you’re a buyer or a seller, make sure to arrive prepared with a strong team to make sure your deal wins. Reach out to us with any questions to help you make the most educated decision.
This article is intended to be accurate, but the information is not guaranteed. Please reach out to us directly if you have any specific real estate or mortgage questions or would like help from a local professional. The article was written by Sparkling Marketing, Inc. with information from resources like Realtor.com, NAR, and HousingWire.