Friday, May 12, 2023

Will the lovely mid-spring weather bring out new listings?

I do hope so, inventory has been real tight for over a year now. Pleasant weather tends to stir up real estate. Buyers start thinking about looking in good weather as it is always nice to be out in fine conditions. Sellers often start thinking about moving in the nice weather which is definitely preferred over bad weather. There has always been a bit of a perk in the market place during the mid to late spring.

I have mentioned a lot about our local market and the conditions we face. Very tight inventory is keeping prices steady and a lack of buyers is keeping prices from skyrocketing. Overall I would bet that we see a seasonal uptick in both buyers and sellers but not likely a change in the balance. It should remain a sellers market though the summer and fall seasons. 

Homeowners will continue to cling to their 2.5-3% mortgages until such time that they are compelled to move for a job change or new family members, etc. One thing I am seeing for the first time in decades frankly is the use of the assumption clause in VA and FHA loans. There is an advantage in that a qualified borrower can assume the loan at the original low rate. However if the house has seen sizable equity gain over the last few years, which it almost certainly has, the borrower has to come up with a large downpayment to take advantage of the assumption. 

I will write an article about assuming loans in the next week or so as I feel this is going to pick up steam in the marketplace over the next few years.

Meanwhile the market remains a bit rough for buyers but not as hectic and crazy as a few years ago. Many listings are seeing multiple offers but some are staying on the market over a month before seeing an offer. So buyers can at least take a breath for now.

No comments:

Post a Comment