What Are Experts Saying About the Spring Housing Market?

Experts are generally optimistic about the spring housing market, but there are nuances to consider:

• Increase in Inventory: There’s an expectation of more homes coming onto the market, which is a positive sign for buyers. However, this increase might not fully meet the demand, leading to continued competition.Odeta Kushi, Deputy Chief Economist, First American:
  

  “. . . it seems our general expectation for the spring is that we will see a pickup in inventory. In fact, that already seems to be happening. But it won’t necessarily be enough to satiate demand.”

• Strong Demand: The demand remains robust, particularly driven by millennials who are in the prime first-time homebuying age range. This indicates that there will still be competition among buyers.Lisa Sturtevant, Chief Economist, Bright MLS:
  

  “There is still strong demand, as the large millennial population remains in the prime first-time homebuying range.”

• Price Dynamics: While price increases are slowing down, prices are still relatively high. This situation benefits both buyers and sellers, creating a balanced market.Danielle Hale, Chief Economist, Realtor.com:
  

  “Where we are right now is the best of both worlds. Price increases are slowing, which is good for buyers, and prices are still relatively high, which is good for sellers.”

• Preparation is Key: Both buyers and sellers need to prepare. Buyers should focus on improving their credit scores, while sellers should ensure their properties are attractive to stand out in a competitive market.

 

• Affordability: There may be more affordable homes available compared to the previous year, particularly in the price range of $200,000 to $350,000. This presents an opportunity for buyers seeking homes within this range.

 

• Speed of Transactions: Properties are still selling quickly, with attractive listings going pending in less than a month. This indicates a sense of urgency for buyers to act swiftly.

The spring housing market is expected to see an increase in inventory, but demand remains strong, leading to continued competition among buyers. Both buyers and sellers should prepare accordingly to navigate this dynamic market successfully.