For most agents, spring is when business starts to pick up. And you’ve probably heard a lot of talk about high rates and a possible bubble. Are you wondering how the market will fare for you?
The bad news: This spring probably won’t be quite as busy as last year.
The good news: You probably won’t see a significant drop in business. National sales will likely dip slightly, but there should still be a healthy demand for housing.
Rates won’t get as high as predicted. Rates retreated at the start of the year, but most economists think that was a blip on the radar. You should expect gradual increases through spring and summer.
Prices are expected to continue growing. But not as quickly as they have in the past few years. The chief economist from LendingTree forecasted growth to “…moderate to about 3 percent year-over-year. There will be some localized declines, but we don’t expect a national decline.”
With the year’s early drop in mortgage rates, homebuyers have more options than they’ve had in a while.
Competition won’t be as intense. With increased inventory, we can expect less overall competition on the buying side. This means fewer bidding wars and more negotiating room for your buyers.
On the flip side, your sellers may need to be patient and willing to make a few concessions.
Millennials are primed for homeownership and the national unemployment rate is falling. The housing market is showing continued demand.
Have questions about how these forecasts will affect your business? Reach out today for advice on educating your prospects on the spring housing market.