The spring market has begun, and history shows that the spring and summer months bring more real estate transactions than fall and winter in Connecticut.
Last year was anything but typical, and has left many questioning what spring 2021 and beyond will look like in the housing market.
Let’s take a look at what experts predict for spring sellers and buyers.
Selling this year? Now is the time.
Homeowners dream of timing the market right. This spring, sellers have the opportunity to take advantage of a seller’s market. Here are four statistics that show the benefits for sellers:
- There is currently high demand from homebuyers. Buyer showings are up 51.5%, according to ShowingTime, which tracks the number of buyer showings on residential properties. This means more potential buyers are looking at each property listed for sale.
- There are not enough homes for sale. In addition to more buyers on the market, the amount of inventory has dropped by 48.6% over the past year, according to realtor.com.
- Multiple offers are coming in. Many properties aren’t just receiving one offer – but multiple. An average of 3.7 offers per house was recently reported by agents, according to the National Association of Realtors.
- Home values have increased over the past year, which means homeowners can cash out on increased home equity. According to CoreLogic, the average homeowner gained $17,000 in equity over the past year.
Buying this year? Here’s what to expect.
Even though we’re currently in a seller’s market, there are still benefits to buyers searching for a home. After a long shortage of homes, experts believe that inventory will begin to pick up this spring, and some believe that inventory will continue to increase through the second half of 2021.
“Despite early weakness, we expect to see new listing grow in March and April as they traditionally do heading into spring.”Danielle Hale, Chief Economist, realtor.com
Mortgage rates are also a strong factor in buying a home. Mortgage rates dropped historically at the end of 2020, and have begun to rise, creating a sense of urgency for buyers.
“Since reaching a low point in January, mortgage rates have risen by more than 30 basis points…However, the rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season.”Freddie Mac
As you can see, experts remain optimistic about the housing market for both buyers and sellers. If you are interested in what this means for you, contact us today.