Buyer Demand Surging as Spring Market Begins
Last fall, some predicted that the 2019 residential real estate market would be a disaster. There was even belief we might experience a housing crash like the one that occurred during the last decade.
However, according to two separate reports*, buyer demand dramatically increased over the last three months, leading into this spring buyers’ market (the March data is not yet available).
Both the ShowingTime Showing Index and the National Association of REALTORS Buyer Traffic Index show that buyer demand has increased in each of the last three months.
Why the increase in demand? Increased buying power.
According to the National Association of Realtors’ Economists’ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand.
“Due to the combination of falling home prices and mortgage rates, the income needed to make an affordable mortgage payment (mortgage no more than 25% of income) on a median-priced home with 10% down payment and 30-year fixed rate mortgage decreased from $60,425 in June 2018 to $53,783 as of February 2019, and the difference of $6,642 represents a gain in buying power because one can afford a home purchase at a lower level of income.”
Bottom Line
It appears the spring buyers’ market is going to be much stronger than many had projected. Whether you are selling or buying, this is important news.
To view original article, visit Keeping Current Matters.
A Look at Home Price Appreciation and What It Means for Sellers
While price appreciation is strong now, those same experts say it’ll start to appreciate at a more normalized pace next year.
The Best Use of Time (and Money) When It Comes to Renovations
The pandemic kept people at home last year, and during that time, many homeowners completed some home improvement projects.
Are Houses Less Affordable Than They Were in Past Decades?
If you want to buy a home, don’t let the headlines about affordability discourage you.
The Community and Economic Impacts of a Home Sale
When you buy or sell a home, you’re leaving a lasting impression on the community at large in addition to fulfilling your own needs.
Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes
Existing homes are now the top preference among today’s buyers. Are you ready to sell?
Sellers: Make Today’s Home Price Appreciation Work for You
While prices aren’t expected to depreciate, the rise in prices is forecast to moderate over the next few years.