What You Can Expect from the Spring Housing Market
As the spring housing market kicks off, you likely want to know what you can expect this season when it comes to buying or selling a home. The housing market seems to be relatively immune, while there are several factors causing some uncertainty, including the rising inflation, conflict overseas, and the first rate increase from the Federal Reserve in over three years. Take a look at what experts say you can expect this spring. 1. Mortgage Rates Will Climb The 30-year fixed mortgage rate has increased by more than a full point in the past six months as per Freddie Mac report. In recent weeks despite of some mild fluctuation, experts believe rates will continue to edge up over the next 90 days. If you’re a first-time buyer or a seller thinking of moving to a home that better suits your needs, realize that waiting will likely cost you and pay a higher mortgage rate on your purchase. The higher rate drives up your monthly payment and can really add up over the life of your loan. 2. Housing Inventory Will Increase In eight months, as announced by National Association of Realtors (NAR), the month's supply of inventory increased for the first time. It was recently reported by Realtor.com that the number of newly listed has grown for each of the last two months. The inventory of existing homes usually grows every spring, and it seems, based on recent activity, the next 90 days could bring more listings to the market. If you’re a buyer who has been frustrated with the limited supply of homes available for sale, it looks like you could find some relief this spring. However, be prepared to act quickly if you find the right home. If you’re a seller, listing now instead of waiting for this additional competition to hit the market makes sense. Your leverage in any negotiation during the sale will be impacted as additional homes come to market. 3. Home Prices Will Rise Prices are always determined by supply and demand. Though the number of homes entering the market is increasing, buyer demand remains very strong. What does that mean for you? With the demand for housing still outpacing supply, home prices will continue to appreciate. Many experts believe the level of appreciation will decelerate from the high double-digit levels we’ve seen over the last two years. That means prices will continue to climb, just at a more moderate pace. Most experts are predicting home prices will not depreciate. Won’t Increasing Mortgage Rates Cause Home Prices To Fall? While some people may believe a 1% increase in mortgage rates will impact demand so dramatically that home prices will have to fall. As the chart shows, mortgage rates jumped by at least 1% six times in the last thirty years. In each case, home values increased. So again, if you’re a first-time buyer or a repeat buyer, waiting to buy likely means you’ll pay more for a home later in the year (as compared to its current value). If you’re thinking of buying, act now before mortgage rates and home prices increase further. If you’re thinking of selling, your best bet may be to sell soon so you can beat the increase in competition that’s about to come to market. Schedule a Zoom Meeting with Steve! 📅 Want to stay updated? Join our VIP Email List!
Golden Opportunity for the Sellers This Spring
If you’re thinking of selling your house this year, timing is crucial. After all, you’ll want to balance getting the most out of the sale of your current home and making the best investment when you buy your next one. If that’s the case, you should know – you may be able to get the best of both worlds today. Here are four reasons why this spring may be your golden window of opportunity. 1. The Number of Homes on the Market Is Still Low Today’s limited supply of houses for sale is putting sellers in the driver’s seat. There are far more buyers in the market today than there are homes available. That means purchasers are eagerly waiting for your house. Listing your house now makes it the center of attention. And if you work with a real estate professional to price your house correctly, you can expect it to sell quickly and likely get multiple strong offers this season. 2. Your Equity Is Growing in Record Amounts According to the most recent Homeowner Equity Insight report from CoreLogic, homeowners are sitting on record amounts of equity thanks to recent home price appreciation. The report finds that the average homeowner has gained $55,300 in equity over the past year. That much equity can open doors for you to make a move. If you’ve been holding off on selling because you’re worried about how rising prices will impact your next home search, rest assured your equity can help fuel your move. It may be just what you need to cover a large portion – if not all – of the down payment on your next home. 3. Mortgage Rates Are Increasing While it’s true mortgage rates have already been climbing this year, current mortgage rates are still below what they’ve been in recent decades. In the 2000s, the average mortgage rate was 6.27%. In the 1990s, the average rate was 8.12%. For context, the current average 30-year fixed mortgage rate, according to Freddie Mac, is 3.85%. And while recent global uncertainty caused rates to dip slightly in the near-term, experts project rates will rise in the months ahead. When that happens, it’ll cost you more to purchase your next home. That’s why it’s important to act now if you’re ready to sell. Work with a trusted advisor to kickstart the process so you can take key steps to making your next purchase before rates climb further. 4. Home Prices Are Climbing Too Home prices have been skyrocketing in recent years because of the imbalance of supply and demand. And as long as that imbalance continues, so will the rise in home values. What does that mean for you? If you’re selling so you can move into the home of your dreams or downsize into something that better suits your current needs, you have an opportunity to get ahead of the curve by leveraging your growing equity and purchasing your next home before prices climb higher. And, once you make your purchase, you can find peace of mind in knowing ongoing home price appreciation is growing the value of your new investment. If you want to win when you sell and when you buy, this spring could be your golden opportunity. Let’s connect so you have the insights you need to take advantage of today’s incredible sellers’ market. Schedule a Zoom Meeting with Steve! 📅 Want to stay updated? Join our VIP Email List!
Is it too late to buy a home?
2021 has been a banner year for housing, fueled by record low interest rates, strong demand, and a low supply of homes. You may be wondering if you are late to the party, or if it's still a good time to purchase. Experts expect demand to increase over the next several years as more millennials turn of age to buy a home. At the same time, inventory is expected to remain extremely tight. Builders are struggling to deliver homes with labor and chip shortages, as well as supply chain disruptions. Like any market, strong demand and tight supply is very supportive of home prices. Additionally, interest rates are still extremely favorable, even though they have moved a bit higher from record-low levels, due to some inflationary pressure. As we move into 2022, both buyers and sellers are wondering, what’s next? Will there be more homes available to buy? Will prices keep climbing? How high will mortgage rates go? For the answer to those questions and more, we turn to the experts. Here’s a look at what they say we can expect in 2022. 𝙒𝙝𝙖𝙩 𝘿𝙤𝙚𝙨 𝙏𝙝𝙞𝙨 𝙈𝙚𝙖𝙣 𝙛𝙤𝙧 𝘽𝙪𝙮𝙚𝙧𝙨?Hope is on the horizon for 2022. You should see your options grow as more homes are listed and some of the peak intensity of buyer competition starts to ease. Just remember, rising rates and prices are a great motivator for you to find the home of your dreams sooner rather than later so you can buy while today’s affordability is still in your favor.𝙒𝙝𝙖𝙩 𝘿𝙤𝙚𝙨 𝙏𝙝𝙞𝙨 𝙈𝙚𝙖𝙣 𝙛𝙤𝙧 𝙎𝙚𝙡𝙡𝙚𝙧𝙨?Make no mistake – this sellers’ market will remain in 2022 as home prices are projected to continue climbing, just at a more moderate pace. Selling your house while buyer demand is so high will truly put you in the driver’s seat. But don’t wait too long. With more listings projected to become available, your ideal window of opportunity to stand out from the crowd won’t last forever. Work with an agent who knows your local market and current inventory conditions to ensure you have the support you need to make an educated and informed decision about selling in the coming year. If you are considering purchasing a home, conditions are a bit challenging because of low inventory, but the rewards and can be substantial, as the housing boom is expected to continue. Contact our team to see the opportunity you have in 2022 by using smarter strategies.
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