Why the Spring Market is Already Heating Up for Home Buyers
Home Prices Are Up
For home buyers, that lowball offer isn’t likely going to stick this spring. A recent study showed that sellers don’t have to accept much less for their home than what they list it for. Nationwide, homes are selling at about 98% of the asking price. Homes are fetching more, and in some markets, even selling for above the asking price.
Homes are Selling Faster
Sellers aren’t having to wait as long to see that for sale sign come down. The median number of days a home spent on the market dropped to 44 days. That’s way down from the previous year, when the median was 57 days. The median is the point at which half of the homes sold in fewer days and half of the home sold in more days. In hot markets like Phoenix, homes are selling on average in just 25 days … less than a month! In some markets, 20% of homes are selling within seven days — just a week of being listed!
Inventory of homes for-sale is at record lows in many places. With home prices rising, many home owners are waiting for prices to rise even more, and the return of more equity before putting their house on the market. For home buyers, limited inventories mean fewer choices. You also may find that your offer isn’t the only one on the home you want to buy. The competition is heating up. It underlines the importance of being pre-approved for a mortgage and having your funds in place for the earnest money deposit, the down payment and the closing costs.
Luck Favors the Opportunist
Again, mortgage rates are at record-breaking, super all-time lows. The thirty-year fixed-rate mortgage is averaging in the three and a half percentage range, about half of what it was just a few years ago. For home owners, low mortgage rates may offer you the perfect opportunity to refinance and lower your monthly mortgage payments, particularly if you don’t plan to sell for a while. This will be a spring market unlike any we’ve seen in many, many years. People are buying homes, selling homes and enjoying the homes they love.
eXp Realty—The Results Team—is ready to help you buy or sell your home! Stop on by our location at 2623 N. Walnut St, Bloomington, IN 47404. Or call us at: (812)822-2746.