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Navigating The Market for Prospective Homebuyers
If you've been considering purchasing a home, your main concerns are probably mortgage rates and home prices. This might even be the reason you've suddenly delayed your plans. Some buyers discovered that the numbers simply didn't make sense for their budget when rates increased last year. However, there might be some good news for you!
Economic Data Manager at Realtor.com, Sabrina Speianu, says "The spring housing market could shape up to provide home shoppers with a more plentiful supply of less expensive homes than last year," and although inventory is still not as plentiful as in the pre-pandemic days, "home shoppers will have more choice, and in particular more choice of lower-priced homes."
The number of homes actively for sale in February was up 14.8% from February of 2023, and more inventory means more choices for buyers!
Home Prices Will Remain Steady
Danielle Hale, Chief Economist at Realtor.com adds that, according to economic forecasts, "home prices will be relatively stable in 2024. We'll still see the usual seasonal ramp-up, but I don't expect to see much growth beyond that."
"A rising share of price reductions suggests that today's sellers are responding to market conditions and motivated to adjust to find buyers if they find they've priced too high initially," says Hale.
And while home seller flexibility will vary greatly by market, Hale adds, "Home prices remain high, but the data suggest that buyers may have some room to negotiate when submitting an offer."
What About Mortgage Rates?
Whether the housing market truly heats up depends on mortgage rates, which have been on a bit of a roller-coaster ride since the fall. Mortgage rates dropped abruptly in December after the U.S. Federal Reserve indicated it would be cutting its own short-term interest rates. (While the Fed's rates and mortgage rates are separate, mortgage rates often follow in the same direction.)
This led to mortgage rates coming down and stabilizing around 6.6% in the early weeks of the new year. However, the reprieve did not last long. Rates shot back up to 6.94% for the week ending Feb. 28, according to Freddie Mac.
While mortgage rates are nearly impossible to forecast, the optimism from the experts should give you insight into what's ahead. If your plans were delayed, there's still light at the end of the tunnel for eager buyers!
Connect with a local real estate professional at Ruhl&Ruhl Realtors and they'll help you stay informed on what's happening!
*Sources: Keeping Current Matters, Realtor.com, and Freddie Mac
