Spring has officially arrived and many are wondering what will be in store for the real estate market this season. If you are interested in either buying or selling a home there are some factors that present some uncertainty right now such as rising inflation, interest rate fluctuations, and conflict overseas. Regardless of these ongoing items, the housing market has proven itself to be fairly immune. Here are some predictions that experts have shared for this spring.
Home Loan Rate Increases
Freddie Mac has indicated that the average 30-year fixed-rate mortgage has increased by over a full point in the past 6 months. Regardless of some adjustments in recent weeks, experts say rates will continue to be on the upswing over the next few months. Freddie Mac says “The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year.”
Housing Inventory Growth
Good news may be in the future for home buyers. Realtor.com has recently said that the number of newly listed homes has been increasing for the past couple of months. The National Association of Realtors (NAR) has also put out that the months’ supply of inventory has increased for the first time in eight months. Normally the spring season is when inventory grows so the next few months could be promising with more homes coming on the market. For buyers, this could mean more properties to choose from soon. For sellers, listing now may be wise as you avoid more competition.
Increasing Home Prices
Home prices are always going to be influenced by supply and demand. Despite the number of homes coming on the market being expected to increase, the demand out there is still quite strong. Realtor.com states “During the final two weeks of the month, more new sellers entered the market than during the same time last year. . . . However, with 5.8 million new homes missing from the market and millions of millennials at first-time buying ages, housing supply faces a long road to catching up with demand.”
Ultimately while we may see both rates increase as well as inventory levels, the buyer demand is still quite great. Mortgage rates are not expected to increase too much where home prices will most likely still rise just perhaps at a more steady pace as opposed to what we have seen in the recent past.