Freddie Mac and the National Association of Realtors (NAR) both released data showing that the Spring market is expected to be a busy one.
Lower mortgage rates than expected, more inventory on the market and higher consumer confidence is causing the market to gain momentum. According to the National Association of Realtors monthly existing home sales has reached a 4 year high. A typical homeowner accumulated an estimated $8,700 in housing equity over the past 12 months and $21,300 over the past 24 months. NAR President John Smaby says, “Potential buyers and sellers should seek out a local Realtor to stay abreast of the market and take advantage of the various housing benefits that are currently being extended during housing transactions.”
According to Realtor.com Chief Economist Danielle Hale, “Buyers will still contend with rising prices in most markets, as shown by the 3.6% growth in prices of homes sold in February, but the gains are slowing, which will help buyers keep pace,” Hale continued. “While not the frenzy we saw in early 2018, this year we expect the housing market to gain momentum as we move further into the year."
If you have been waiting patiently to put your house on the market you might want to take advantage of the increase in buyer activity. Home prices decreased 1.9% in January but are predicted to increase, reaching 3.5% and 2.5% in 2019 and 2020, respectively, according to Freddie Mac. “The decline in mortgage rates over the last two months and the positive impact from the strong job market and the demographic tailwind from the Millenial generation aging into home-ownership should translate into higher demand” according to American Chief Economist Mark Fleming. Always a good thing for sellers.
Should you have any questions about the local market please don’t hesitate to contact me. Happy Spring!