2023 Spring Real Estate
Springtime is here! Historically, the real estate market during the spring season is a wonderful time for buyers. In fact, there are several advantages that buyers have right now.
After several weeks of rising mortgage rates, we are now seeing a decrease in the 30-Yr FRM, according to Freddie Mac. While it's likely that we will not see rates sink to the record-low rates that we saw in early 2021, the dip in rates is enough to boost the buyer's purchasing power. Simply put, a decreasing mortgage rate gives the buyer a lower expected monthly payment.
There have been a lot of price reductions, especially in California. In fact, 20% of California's listings experienced a price reduction based on Redfin's records. This is a sign of a cooling market, and it is starting to lean toward a more balanced market, working in the buyer's favor. Additionally, the longer these houses sit on the market shows that the sellers are pricing their homes too high. The buyers aren't biting, so the sellers will need to reduce their prices if they want to sell their houses. All in all, prices are expected to be steady and stabilized.
The housing inventory is still low, however, the average months of housing supply did increase to 3 months. For reference, a balanced housing market has an average of 6 months of housing supply. With the buyer demand decreasing and houses staying on the market longer, it's allowing for the inventory to slowly grow.
NOW IS THE TIME TO BUY
The decrease in mortgage rates, the stabilized home prices and the slowly growing housing inventory are all factors of the market becoming more balanced, and even leaning toward a buyer's market. If you're thinking about buying a home, this is the time to stay the course. There's not a lot of competition at the moment, and homes are sitting on the market longer, meaning sellers are highly motivated to sell. All of these factors work in the buyer's advantage.
Spring is a great time to buy a home. Let's find one, together.