As the winter season is coming to an end and spring is just around the corner, we can expect the housing market to start getting back into full swing.
The market over the past 12 months has been largely in favor of the sellers due to low inventory and high demand. According to the experts, however, buyers should have a little more leverage going into this spring. We are still not expecting a full shift to a buyer’s market, but buyers should see slower price growth and less competition.
If you are thinking about purchasing a home this spring, these are some things to keep in mind that will help you in the decision making process.
Expect less bidding wars.
Over the last couple years you could probably expect to see a bidding war in virtually every home transaction. This will slow down a lot in spring and the following months. Buyers can be a little more at peace knowing that they shouldn’t be blindsided by any back door offers.
Sellers will be more willing to negotiate.
Demand will be lower this spring than in previous months due to higher interest rates. Many home owners will be inclined to wait to buy because they don’t want to give up their current interest rate. This means that sellers will have to be willing to negotiate more to attract buyers. Sellers will be more likely to pay closing costs and offer more concessions.
The housing inventory will stay the same.
Home builder sentiment is rising, but current homeowners are less likely to make a change due to higher interest rates. These conflicting trends should balance out the inventory this spring. This will cause the amount of home listings to stay about the same as in previous years, resulting in a smaller gap between supply and demand.
Home prices will not continue to explode.
Over the past few years, we have seen home prices increase dramatically. This has been especially true during the busier seasons of spring and summer. Although prices will likely continue to increase, it will not be as drastic this year as compared to previous years.
Knowing what to expect going into a housing market can make a huge difference in ensuring that you get the best deal possible. For more insight on what to expect in the coming housing market, or if you would like to see what you might qualify for, please contact one of our mortgage professionals today!