“If you’re a homeowner planning to sell in 2023, now is the time to get ready.”
The spring season appears to be warming up in housing as more and more buyers enter the market. And after rising mortgage rates sidelined so many buyers last year, that’s a good sign for sellers. Realtor.com has the latest:
“Spring is officially here, and like green shoots emerging from the bleak winter, new data suggests that more buyers are back in the market, although more subdued compared to a year ago.”
We know buyer activity is trending up because of mortgage purchase application data. According to Investopedia:
“A mortgage application is a document submitted to a lender when you apply for a mortgage to purchase real estate.”
That means the number of mortgage applications shows how many buyers are applying for mortgages. Put another way, an increase in mortgage applications means an increase in buyer demand – and as Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains, application activity started ramping up as mortgage rates fell steadily in March:
“Application activity increased as mortgage rates declined . . . recent increases, along with data from other sources showing an uptick in home sales, is a welcome development.”
In fact, we can see how mortgage rates have a direct impact on applications over time. As rates rose dramatically last year, applications fell in response (see graph below):
The recent uptick in mortgage applications, as well as the decline in mortgage rates, is good news for sellers because it means more buyers are actively looking for homes.
What This Means for You
Buyers are coming this spring, which is typically the busiest time of the year in real estate. And as Realtor.com tells us, if you’re a seller, you need to prepare:
“If homeowners are planning to sell in 2023, now is the time to get ready.”
The means working with a local real estate agent to maximize your home’s appeal and get it listed at the ideal price for your area.
Bottom Line
Two Reasons Why Today’s Housing Market Isn’t a Bubble
Today, there’s still a shortage of inventory, which is causing ongoing home price appreciation.
The Average Homeowner Gained $64K in Equity over the Past Year
In addition to building your overall net worth, equity can also help you achieve other goals like buying your next home.
More Americans Choose Real Estate as the Best Investment Than Ever Before
Your house is also an asset that typically increases in value over time, even during inflation.
Why You Need an Expert To Determine the Right Price for Your House
Your goal is to aim directly for the center – not too high, not too low, but right at market value.
What Does the Rest of the Year Hold for the Housing Market?
Home prices are forecast to keep appreciating because there are still fewer homes for sale than there are buyers in the market.
Why Summer Is a Great Time To Buy a Vacation Home
The first step is working with a local real estate advisor who can help you find a home in your desired location.