Spring has sprung and, in our area, the “spring housing market” has already kicked off!
Every year is different and this housing season is certainly no exception. The combination of world events, rising inflation and increasing interest rates has folks interested in the potential effect on the housing market.
Overall, the housing market remains strong and relatively immune from these issues. Let’s take a look at what the experts are predicting this spring:
1. Mortgage Rates Will Increase
Per Freddie Mac:
“The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year.”
If you are a buyer (or a seller considering a move-up home) be aware that waiting to “make your move” may results in a higher mortgage payment on your purchase. Higher rates increase your monthly payment and adds up over the life of your loan.
2. Housing Inventory Will Finally Increase
There seems to be relief on the horizon for frustrated buyers who haven’t been able to secure a home. The number of newly-listed homes has grown for each of the last two months and continues to do so.
Buyer Takeaway: Although it appears like you could find some relief this spring, be prepared to act quickly if you find the right home. Competition may still be very tight in certain neighborhoods and price ranges.
Seller Takeaway: It makes sense to list now instead of waiting for additional competition to hit the market. Your leverage could be impacted as additional homes come to market and present more competition for those buyers.
3. Home Prices Will Rise
Prices are always determined by supply and demand. And although the number of homes entering the market is increasing, pent-up buyer demand remains very strong, keeping prices strong.
Home prices will continue to appreciate because buyers are still plentiful. Many experts believe the level of appreciation will decelerate from the high double-digit levels we’ve seen over the last two years but will continue to climb at a more moderate pace.
Remember that every market is different and in fact, every neighborhood is different! I’d love to provide you with up-to-date market information for your specific areas of interest. Give me a call anytime. 707-636-4215