More homes are finally hitting the spring market — will buyers take the plunge?
Source: NPR
It’s springtime and “For Sale” signs are popping up in front of homes across the country. But with so much uncertainty in the economy, it’s an open question whether the spring housing market will be hot or not. The average 30-year mortgage rate is now 6.65 percent, down a bit from January, but higher than they were a few years ago. Many analysts predict that mortgage rates will linger around this level for now, especially since the Federal Reserve has indicated it’s unlikely to cut interest rates until later this year.
In February, there were 17 percent more existing homes for sale compared to last year, followed by a 10 percent increase in new listings in March compared to a year ago. While homeowners with low interest rates may be inclined not to move, the recent uptick in listings suggests that as time goes on, people do end up moving. Return to office mandates are spurring some people to move closer to cities. Increased inventory will put buyers on better footing, giving them more options and more leverage. For sellers, more competition could mean that they have to be more flexible on price. Over 17 percent of active listings across the county included price reductions in March, according to Realtor.com – the highest for any March since 2016.
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