If you’ve been waiting for the right time to buy or sell a home, this spring may be the sign you’ve been looking for. In recent years, rising mortgage rates and affordability concerns led many would-be buyers to put their plans on hold. However, more buyers are re-entering the market, adjusting to current rates and realizing that waiting for the “perfect” moment could mean missing out entirely.
For homeowners considering listing their property, increasing buyer activity is a promising sign. While we may not be seeing the extreme seller’s market of a few years ago, competitively priced, well-presented homes are selling faster. Here’s why now may be the time to list:
Mortgage applications are up 37% since the start of the year, according to the Mortgage Bankers Association. Buyers are getting pre-approved and ready to act.
Showings are on the rise, with a 13% increase in home tours since January, according to ShowingTime. More tours mean more competition for well-priced homes.
Demand is building, with Redfin reporting a 3% rise in their Homebuyer Demand Index. Even small upticks in demand can translate to faster sales.
With spring traditionally being the busiest season for real estate, listing your home now can help you attract motivated buyers.
If you’ve been waiting for the “perfect” time to buy, here’s what to keep in mind about the spring market:
Price reductions are becoming more common as sellers adjust to attract buyers. According to Realtor.com, these price adjustments are bringing the market closer to pre-pandemic norms, offering more room for negotiation on price, closing costs, and repairs.
While inventory remains tight, more homes are being listed as the spring season progresses. Well-priced homes are still moving fast, so buyers who are prepared and act quickly have an edge. We expect to see more new listings as we move further into spring, giving buyers a better chance of finding a home that meets their needs.
Home values are projected to continue rising. National forecasts predict steady home price growth over the next five years. A home purchased today could appreciate significantly, making it a strong long-term investment. If you wait too long, you may find yourself paying more for the same home a year from now.
Although mortgage rates remain in the mid-to-upper 6% range, many buyers are getting creative with financing. Options like temporary rate buydowns, adjustable-rate mortgages (ARMs), and down payment assistance programs can make the market more affordable.
Spring is shaping up to be a season of opportunity. For sellers, increased buyer activity means you may be able to capitalize on the market’s momentum. For buyers, the potential of more inventory and negotiating power make it a great time to enter the market before prices rise further.
Real estate has always favored those who take action rather than those who try to time the market perfectly. If you’re considering buying or selling this spring, connect with your trusted local realtor and lender to discuss the best strategy to meet your goals.
Market Update
The spring market is heating up, with home prices on the rise and buyer activity increasing. In February, the average sales price hit $363,294, up 8.4% year-over-year. Homes continue to sell quickly, with a median days on market of 22 and well-positioned properties averaging 97.3% of list price. So far in March, 66% of sold homes have gone under contract within 30 days, selling for an average 102.3% of list price—a sign of increasing competition. With prices rising and demand steady, now is a prime time for sellers to list. Limited inventory remains in their favor, and well-priced homes are moving fast.