As spring approaches, the housing market is seeing a surge in activity. With a 14.8% increase in new listings compared to last year, buyers and sellers are gearing up for what could be a busy season. As families look to secure a new home before the start of the school year and sellers take advantage of the fresh spring landscape, the housing market is buzzing with activity.
Traditionally, spring has been seen as the ideal time for both buyers and sellers to enter the market. However, recent trends have shown that waiting until June to list a property for sale could result in a higher sale price. In 2023, homes listed in the first two weeks of June sold for 2.3% more than the average U.S. home, according to a Zillow analysis. This shift in timing highlights the changing dynamics of the real estate market.
The real estate market has undergone significant changes in the past few years. The Covid-19 pandemic, which led to lockdowns in 2020, disrupted traditional market cycles. Buyers were purchasing homes throughout 2021, regardless of the season, due to low mortgage rates and remote-work policies. However, as mortgage rates began to rise in March 2022, the market experienced a slowdown.
While some experts predict a return to seasonal behaviors in the real estate market, others believe that the traditional spring selling season may be a thing of the past. The increase in buyer and seller activity in the coming weeks may be followed by an extended home shopping season in the summer. The Federal Reserve’s plans to cut rates could further impact buyer demand and market dynamics.
Despite the increase in housing supply, home prices remain elevated. The median U.S. home sale price is up 6.6% from last year, indicating continued demand in the market. Experts suggest that while now may be a good time to buy a property, refinancing later could also be a smart move. As mortgage rates are expected to decrease, buyer demand may rise, potentially leading to higher home prices.
The current real estate market is in a state of flux, with changing trends and market dynamics. Buyers and sellers should carefully consider their options and timing when entering the housing market. While spring may traditionally be seen as the best time to buy or sell a home, recent events and future projections suggest that the market may be evolving towards a more year-round approach. Keep an eye on mortgage rates, buyer demand, and home prices to make informed decisions in the ever-changing real estate landscape.