Here’s an overview of what you can expect from the 2024 spring market.
As we transition into spring, many prospective homebuyers are wondering, “Should I wait for more inventory to hit the market?” Understanding the dynamics of seasonality in real estate is crucial, especially in light of current trends.
Traditionally, spring heralds an influx of listings as sellers capitalize on the favorable weather. However, 2024 presents a different landscape due to the influence of interest rates. With 82% of homes in the US carrying mortgage rates of 5% or less, and 62% at 4% or lower, there’s a reluctance among homeowners to sell and potentially upgrade to higher rates, which currently hover around 7.5%.
“2024 presents a different landscape due to the influence of interest rates.”
This hesitancy to sell has disrupted the typical seasonal patterns observed in previous years. In 2023, we witnessed a similar scenario when interest rates surged, dampening the spring market. While it’s uncertain if we’ll experience such drastic shifts again, it’s evident that buyers and sellers alike are adjusting to what is considered a “normal” interest rate environment.
Speculation about future rate cuts from the Federal Reserve adds another layer of uncertainty. While some anticipate multiple reductions, the prevailing sentiment suggests a single cut in the coming year. Nonetheless, the anticipation of decreased rates isn’t reason enough to put your home search on hold.
Buyers should remain vigilant in their search efforts, as the perfect property may surface when least expected. Additionally, exploring options like a mortgage rate buydown can mitigate concerns about current interest rates. This strategy, wherein sellers offer concessions to lower the buyer’s interest rate, could prove advantageous in the long run, especially if rates align with historical averages around 6%.
Ultimately, the key takeaway is to stay proactive. By staying informed and leveraging available resources, such as automated listing alerts, buyers can navigate the evolving real estate landscape with confidence. Don’t delay your search based on assumptions about seasonal inventory fluctuations. If you have any questions, don’t hesitate to call or email. I look forward to assisting you on your real estate journey. Let’s stay connected and make your homeownership dreams a reality.
