The anticipation is over as the spring home-buying season kicks off with a bang! This is perfect timing because NFL season is about over and now you can visit open houses on Sundays! With a surge in home sales and prices, coupled with an increase in inventory, the real estate market is abuzz with activity. Let’s see what’s in store for buyers and sellers alike.

Building Momentum

According to recent data from the National Association of REALTORS® (NAR), existing-home sales experienced a substantial uptick of nearly 10% in February, marking the largest monthly increase in a year. This surge in sales is a promising sign for the real estate industry as the market gears up for the spring selling season.

Lawrence Yun, Chief Economist at NAR, attributes this growth to the additional housing supply, which is helping to meet the rising demand in the market. Factors such as population growth and job expansion are fueling this demand, driving the steady increase in home sales.

Rising Prices, Easing Competition

While home prices continue to soar, reaching a median existing-home price of $384,500 in February, there’s hope on the horizon for buyers. The improved inventory conditions are offering buyers more options and potentially easing the competitive landscape.

Total housing inventory saw a notable increase at the end of February, rising by nearly 6% compared to January and up 10.3% from the previous year. This uptick in inventory, combined with properties spending slightly longer on the market, provides buyers with a window of opportunity to explore their options more thoroughly.

Regional Trends

The housing market’s performance varies across regions, with each area experiencing its own unique dynamics. Here’s a snapshot of how existing-home sales fared in different parts of the country:

  • Northeast: Despite flat home sales compared to January, the region saw an 11.5% increase in median prices from February 2023.
  • Midwest: Home sales in the Midwest rose by 8.4% from January, with a median price increase of 6.8% from the previous year.
  • South: Existing-home sales in the South climbed by 9.8% from January, with a median price rise of 4.1% compared to last year.
  • West: The West experienced a significant surge in home sales, up by 16.4% from January, with a median price increase of 9.1% from a year ago.

Spring into Action

As the spring home buying season unfolds, it’s essential to be prepared to seize opportunities in the market. With mortgage rates stabilizing and inventory improving, now is the time to act.

We advise buyers not to wait for further improvements in rates or prices, as any potential dips may lead to increased competition down the line. Instead, assembling a dedicated home-buying team and exploring financing options early can give buyers a competitive edge in a tight market.

First-time homebuyers, in particular, should take proactive steps to prepare for their home-buying journey. From reviewing credit profiles to exploring down payment assistance programs, early planning can make the process smoother and more manageable. If you need credit repair information give us a holler.

In a competitive market, flexibility is key. Buyers should consider their affordability threshold and be open to adjusting their preferences to find the perfect home within their budget.

Conclusion

As the spring buying season unfolds, the real estate market is brimming with opportunities for buyers and sellers alike. With a surge in home sales, improving inventory, and stable mortgage rates, now is the time to make your move in the market. Whether you’re a seasoned buyer or a first-time homebuyer, being proactive and prepared will set you up for success in this dynamic and exciting market. Give us a call at Brazoban Realty today and get started now!

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