What is the Spring housing market going to look like?

Believe it or not, but Winter is technically behind us. Though it may not feel like it yet, Spring is here, and with it, the Spring housing market. Since the usual trends we had come to expect have all been turned on their heads post 2020, we’d like to give you a brief rundown of what is likely to come and how it compares to what we have seen most recently. Our hope is to best prepare you, whether you are a buyer or a seller, and plant the seeds for success.

Available homes are still limited

We are expecting to see more inventory this Spring, but nothing to write home about. The inventory over the past two years has been so low that even a marginal increase will not tip the scales in buyers’ favor. New constructions have been severely delayed due to countless factors such as the pandemic, and availability and rising prices or materials. These newly built homes are not expected to catch up to the demand any time soon. This means we can continue to expect the same bidding wars, with prices going above asking price with terms dictated by the seller’s preferences. This upside for sellers is holding strong.

Prices are still rising

While the skyrocketing price rises of just a few months back are starting to calm, we are still expecting them to rise into the Summer months, though not as sharply. Sellers can enjoy knowing they can receive more money for their home than ever before. But as the rise inches closer and closer to a plateau, there is hope for buyers. As mortgage rates start to go back up, buyers can take some solace in knowing that prices won’t quickly jump out of their reach at a moment’s notice.

Mortgage rates are rising

Here’s where we see the most difference from the past few years. Mortgage rates had been dropping to record lows, and buyers were taking full advantage. These lower rates meant buyers could shop at higher price points and end up paying the same monthly payment they would have had in 2019 for a cheaper home. Though home prices were rising, low rates were a buyer’s best tool. Now that these rates are heading back up, buyers are starting to feel the pressure, flooding the market in fear they may eventually be priced out. 

It is important to look at these factors as a whole when deciding to buy or sell.

Sellers:

Expect a similar market to what we’ve been used to lately (but maybe not with the same level of drama). When well marketed and priced properly, your home will most likely see multiple offers with desirable terms and prices. You are still in the driver’s seat. But since we do not know how long this large pool of buyers will last, selling your home sooner rather than later could be your best decision. 

Buyers: 

The best plan of attack remains the same. Put your best foot forward when home shopping. See homes quickly when they hit the market, submit strong offers, and be ready to pivot at the seller’s request. Acting fast can be scary, but could also be the most beneficial long term. With rising rates, and rising prices, it is safest to buy before the chance slips away. 

As always, we are here to help guide you through the ups and downs of the housing market. Reach out today with any questions and learn what path is best for you!

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