With Spring right around the corner, the U.S. housing market is preparing for its busiest time of year. As both buyers and sellers prepare to test the housing market with their properties, a variety of factors will be at work, impacting the market in numerous ways both good and bad. Thus, if you are a real estate agent or investor hoping to get plenty of referral leads
about property owners eager to sell their homes, here are some important details to keep in mind.
While interest rates are still hovering at low levels of 4.4%-4.5%, this is expected to change as the year moves forward. Because of this, it is expected many first-time home buyers will be entering the housing market during the spring, making it a very competitive buying environment. This, coupled with a housing inventory that is increasing at a steady pace, will result in buyers who have more room in their budgets for a mortgage payment trying to purchase lower-priced properties as soon as possible.
According to most real estate experts, the major factor that will drive the Spring housing market will be a sharp increase of Millennials who are moving from renting homes to buying homes. As monthly rental payments continue to increase to a current U.S. average of $1,468, many renters will decide if they are going to have higher rent payments, they might as well make the move to home ownership. With the average price of a U.S. home now at $225,300, which is an increase of 7.5% from this time last year, buyers should try to find the properties they want and close the deal as fast as possible, since home prices are expected to continue trending upward.
As home values continue to increase, this trend is being seen throughout the United States, with the nation's 35 largest housing markets reporting increases. Leading the way were Indianapolis and Atlanta, both of which saw home values increase by 12 percent. Other cities, including Orlando and Portland, OR, also saw similar increases.
According to the National Association of Realtors, buyers who see properties they are interested in purchasing should wait no more than two weeks before making an offer, since the competition will be intense. However, it is also expected that many sellers, knowing interest rates will be rising, will be more willing to negotiate price reductions in order to see their homes sell quickly.
By making sure you have plenty of referral leads
from home sellers when Spring and its influx of eager sellers enter the market, you can be sure to not only obtain the properties you've had your eye on for awhile, but do so at a price that is very budget-friendly.