The time has finally come to bid winter farewell and welcome spring with open arms. A switch in seasons is the perfect opportunity to step back and get a pulse check on the state of the housing market. Good news – we’ve done our research and want to share some key findings with you:
It’s not just the weather that’s heating up! With scarcer home listings and high buyer demands, there’s expected to be hot competition in the market this spring. Why? According to a recent REALTOR Magazine article there are three main contributing factors that have Americans flocking to housing: an improving job market, growing consumer confidence and the threat of rising mortgage rates.
Since November 2016, the 30-year fixed-rate mortgage has risen by more than half a percentage point. The Federal Reserve’s recent vote to increase its benchmark interest rate by a quarter point has many thinking there are more increases ahead. For buyers, this is instilling a sense of urgency, and for the industry, high housing demand. As quoted recently via CNBC, Redfin crunched the numbers: according to Redfin’s recent Housing Demand Index (based on Redfin customers requesting home tours and writing offers,) homebuyer demand was up 23 percent compared to January 2016, led by a 26 percent annual increase in homebuyers requesting tours and an 18 percent increase in buyers making offers.
As an agent, how can you prepare? Here are some tips:
- Do some spring cleaning – Busy season can be a lot less daunting when you’re prepared. Organize your work space, update any outdated materials and get rid of anything unnecessary. Do the work ahead of time for smoother sailing once the winds pick up.
- Educate your clients – No one knows the market as well as you do. Being the expert, take the time to inform home buyers and sellers on the state of housing and the best next steps for them.
- Don’t assume – Just because buyer demand is high doesn’t mean every house that hits the market will be an automatic sale. Remind your clients to take the time to think through the process, from listing price to general aesthetic, to ensure the most successful transaction.
Do you have any tried and true tips for conquering the spring housing market? Share them in the comments below!