You want to be prepared for the spring housing market. There are many factors that can cause uncertainty such as the conflict in the Middle East, rising inflation and the first rate hike from the Federal Reserve over three years , but the housing market seems relatively stable.
Here are some predictions from experts about spring.
Mortgage Rates Will Rise
Freddie Mac The 30-year fixed mortgage rate increased by more that a full percentage in the last six months. Experts believe that rates will rise over the next 90-days, despite mild fluctuations in recent week.
If you are a first-time buyer, or a seller looking to move into a better home, you should know that you will pay a higher interest rate if you wait. This higher rate can increase your monthly payments and add up over the loan’s life.
Housing Stock Will Rise
Buyers looking for homes to buy may find some relief. Realtor.com reported recently that the number new homes increased for each of two months. The National Association of Realtors just announced that the month’s supply of inventory increased. This is the first time it has happened in eight-months. Based on the activity in recent months, it appears that the inventory of existing homes will grow every spring.
It looks like buyers who are frustrated by the lack of homes for sale could be able to find relief this spring. If you do find the perfect home, it is important to act fast.
Listing now is better than waiting for more competition if you are a seller. As more homes are added to the market, your leverage in negotiations will be affected.
Home prices will rise
Supply and demand determine prices. Despite the increasing number of homes on the market, buyer demand is still very strong.
What does this mean for you? Home prices will continue rising as the demand for housing continues to outpace supply. Experts believe that the rate of appreciation will decline from the double-digit highs we have seen in the past two years. This means that prices will continue rising, but at a slower pace. Experts predict that home prices will not fall.
Will Increasing Mortgage Rates Not Cause Home Prices to Fall?
Experts disagree with the belief that a 1% rise in mortgage rates will cause home prices to drop.
If you are a first-time or repeat buyer, you will likely pay more to buy a home late in the year if you wait.
Three things seem certain about the spring housing market
- The mortgage rates will continue to rise
- There will be a slight increase in the number of homes for sale
- The pace of home price appreciation will be slightly slower, but it will not stop.
You should act quickly if you are thinking about buying a home. Selling is a good option if you want to beat rising competition. Contact Preferred Properties of Texas to speak with one of our knowledgeable agents today!