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The Spring Market Breaks Historical Trends
Historically, we see sellers bring their homes to the market in the Spring, and this is one of the first years that we have been tracking that we have seen the opposite trend to be true.
We were expecting that this would finally be the week that inventory started rising, but instead, the inventory of available homes fell again. Inventory levels have returned to their pandemic-era lows. While demand may be lower than the insanity of last year, there are still plenty of buyers competing for the limited supply of homes on the market, and this has created a big window of opportunity for those wanting to sell this spring.
Interest rates have been one of the largest factors for the low inventory of available homes and have caused many people to stay on the sidelines; however, rates are forecasted to start seeing some improvement starting in May and into the summer of this year. If rates do indeed start to come down and start to settle, we suspect we will see strong demand from many homebuyers who have been on the fence waiting, which certainly will have an impact on our housing prices.
We track the market closely so we can help our clients make informed decisions about their real estate goals, and more than ever, if you have any real estate plans this year, you need to be working with an agent that is up to date with the market and is able to help you understand how the current market trends may affect you.
Here is how the current market may affect you:
Considering Buying a Home:
Instead of paying well over the list price and competing against multiple offers, you now have time to consider your options and make fair offers that are getting accepted. Yes, interest rates are certainly higher now than they were, but the price of the home is lower today, and your total cost of ownership over the term of your loan is cheaper today. If you can’t seem to make the payments work with the 30-year fixed loan, consider getting a 7-year (ARM) adjustable-rate mortgage. Data shows most people are not even living in their homes longer than 5 years these days. If you wait for rates to drop, you will need to factor in paying more for the house and having to face more competition again. We suggest the concept of marrying the house and dating the rate. You can always refinance when rates drop to make it more affordable, but waiting will almost certainly cost you more.
Considering Selling a Home:
There are still plenty of homebuyers out looking for homes, and there is little competition to deal with. If you are selling your home, it’s CRITICAL that it is being presented and marketed in a way that stands out among the rest. Also, your pricing strategy is more important right now than it has been in a very long time. If you are thinking of selling, this Spring market may be the window of opportunity you need to sell for a good price in a reasonably short time.
Bottom Line:
Based on the data in the first quarter, we can already see the price strength in the housing market all the way through mid-summer at least. If you have a hypothesis about home prices falling in 2023, that trend can’t even start until the 3rd quarter at the earliest. Home prices for 2023 are not showing any signs of further price decline. It all happened in 2022. Maybe that changes later, but not yet.
What real estate goals do you have this year? We want to hear from you.
Give us a call at (208) 501-8200 and or send us an email, and we can walk you through your options.
At your service,
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"They worked hard for us while selling our home; from the time our home went to the market to the time it closed was just over a month…he was AMAZING! Thank you, thank you, thank you! You guys do an amazing job and I will continue spreading good things about you and send business your way! "- Gary & Jenny Grant