Spring Housing Market Trends
What’s a topic that always comes up in convo? THE REAL ESTATE MARKET! It’s crazy & I didn’t quite realize how much until I became a Realtor. Now, I expect it whether I’m at a party, the grocery store or at dinner. The big topic of conversation these days is what the spring market housing trends will be this spring. To give y’all some insight, I figured I’d write a little blurb on the 3 biggest topics I’m hearing about; home inventory, interest rates, & home prices.
Inventory has been at an all time low over these first few months in 2022. While it is still early, NAR is predicting in its spring housing market trends, that we will see an increase in the homes coming on the market. We’ve seen the first increase of inventory since August 2021, and if this continues to trend up, we’ll start to see more homes hitting the market over the next few months.
Buyers, this is good news for you! You’ll have more to compare & choose from & hopefully decrease those crazy amounts of offers we’ve been seeing.
Sellers, this means that you may start to see more competition in your market. If you are looking to take advantage of the peak of this seller’s market, you may want to consider listing sooner rather than later!
Interest rates have already started to rise up & over 4%. Rates are trending to keep slowly creeping upwards, but we won’t see a drastic climb anytime soon.
Buyers, this means that you need to work closely with your lender to make sure that you know what your potential monthly payment will be at different interest rates & purchase prices. If you’ve been a wishy washy buyer, now is the time to get serious before you get priced-out of the market.
Sellers, you may start to see offers closer to your asking price due to the increase in interest rates. If your plan is to buy after selling, be sure to keep an eye on these rates, as your budget might have to shift.
I hear time & time again, “I’m waiting until home prices go down before buying”. I have news for you; they’re not going anywhere anytime soon. The increase in interest rate isn’t going to have that much of an effect on the home prices. Buyer demand is really what drives home prices. Since renting is just as expensive as buying, and the younger generation of home buyers have access to so many different loan programs, there’s a huge push to buy a home earlier in life. As long as home inventory remains low & buyer demand high, home prices aren’t going to fluctuate that significantly.
Buyers, this means that the old excuse that you’re going to wait until home prices fall is only going to price you out of the market. These home prices aren’t going to drastically decrease anytime soon & buying high still allows you to gain more equity than you would be renting!
Sellers, while you’re still able to get a great ROI on your home, this market will not stick around forever. No one can really predict for certain what will be in the coming months & years, so taking advantage of this market while we have it will give you great reward!
In my opinion, it’s always a good idea to know what’s happening in your local real estate market. If for nothing else, you have a good topic of conversation! Subsequently, this information will prepare you for your next move & gives you a deeper understanding of the market!
If you’re looking to make a move & take advantage of the current market, I’m happy to assist anyone in RI or eastern CT.
From out of state?
Not to worry! I have connections with Realtors throughout the country & would be happy to refer you to a trusted professional!
Until next time,