What To Expect For The Spring Real Estate Market

From rates to inventory here is what experts are predicting

Spring is officially here and many are speculating what will be in store for the real estate market this season. If you are interested in buying or selling a property there are some factors that present some uncertainty such as rising inflation, interest rate fluctuations and conflict that exists overseas. Despite these things, the housing market has presented itself as being pretty immune. Here are some projections that experts have shared for this spring. 

Mortgage Rate Increases

Freddie Mac has indicated that the average 30-year fixed rate mortgage has risen by over a full point in the past 6 months. Despite some adjustments in recent weeks, experts say rates will continue to rise 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 Improvements

There may be good news in the future for home buyers. Realtor.com has recently shared that the number of newly listed homes has been on the rise for the past couple of months. The National Association of Realtors (NAR) has also released that the months’ supply of inventory has increased for the first time in eight months.  Historically, the spring season is when inventory numbers increase so the next few months could be promising with more homes coming on the market. For buyers, this could mean more homes to choose from soon while for sellers, listing now may make more sense as you avoid more future competition. 

Increasing Home Prices

Prices are always going to be regulated by both supply and demand. Regardless of the number of homes coming on the market being expected to increase, the demand still remains 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, the buyer demand is still quite good. Home loan rates are not expected to increase too severely so home prices will most likely still increase just perhaps at a more moderate pace as opposed to what we have seen in the recent past.