Spring is in the air and in the Bay Area, the “spring housing market” has begun to bloom.
Truthfully, the Bay Area housing market has experienced the urgency of spring for the last year as I’ve worked with diligent, hopeful buyers and I’ve assisted sellers seeking to take advantage of the limited inventory to sell in this brisk market.
Interestingly despite disconcerting world events, inflation woes and an increase in interest rates, the housing market has remained relatively unphased. Buyers remain (mostly) enthusiastic, and Sellers remain (mostly) optimistic.
That’s my take. And no one has a crystal ball, but let’s examine a few predictions from the experts regarding the spring housing market:
1. Mortgage Will Increase
Per Freddie Mac:
“The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year.”
Experts agree that mortgage rates are rising, although by historical standards, rates remain reasonable. But if you are a buyer, it’s important to realize that waiting to “make your move” may result in a higher mortgage payment on your purchase and potentially qualifying for “less home.”
2. Housing Inventory Seems to be on the Rise
Are you a frustrated buyer? Relief may be on the horizon as the number of newly-listed homes has grown for each of the last two months and seems to be an ongoing trend.
Buyers: Competition may still be very high in particular neighborhoods and price ranges. Be ready to move quickly when your dream home hits the market.
Sellers: If it works for you, it may be wise to list now instead of waiting for additional competition to hit the market. Additional homes on the market present more competition.
3. Home Prices Will Rise
Remember, like many commodities, home prices are a product of supply and demand. Pent-up buyer demand remains very strong, which should keep prices strong despite increasing inventory.
Many experts predict that the level of appreciation will slow from the high double-digit levels we’ve seen over the last two years. However, we can expect home prices to tick up at a more moderate pace.
Looking to take advantage of this market? Check out my Gold Glove Service here with complimentary perks for both buyers and sellers (including curb appeal updates and GIFT cards to outfit your new home) that you won't find anywhere else!
Interested in learning more about a target neighborhood? Need advice on selling a home? Give me a call anytime or learn more about me here. I'm always available to chat about real estate! 925.360.3261