We’re approaching spring, which means the housing market is getting ramped up.
Experts agree that the market is softening for buyers, but will it be a full-on buyer’s market? Definitely not -- at least, not by springtime.
This spring, buyers will likely see fewer bidding wars, slower price growth and less competition. But sellers will still have some leverage.
Are you thinking of buying or selling a home this spring? Keep these things in mind:
1. Prices won’t skyrocket.
The last few years have seen massive jumps in home prices, especially during the busy spring buying season. This year price growth is likely to slow down a bit in most markets. We may see higher prices at the height of the buying season, but they’re unlikely to be drastically higher than those seen at the end of 2018.
2. Year-over-year inventory will likely remain stagnant.
Because mortgage rates are rising, many homeowners are staying put. New home construction continues to grow, but it still lags behind buyer demand. This means we are unlikely to see an increase in listings from previous years.
3. Bidding wars will lessen.
The days of sight-unseen offers and heated bidding wars are mostly over. Except for a few hotter markets, most buyers will enjoy a slower-paced market and a little more leverage than in years past.
4. Sellers might have to make some concessions.
As mortgage rates rise, fewer buyers are looking to get in on the market, and that means sellers will need to do more to get their attention. This could mean more concessions and more room for negotiations.