Springtime is upon us - are you ready to face the year’s biggest boom in real estate? Like flowers and trees, the housing market blooms to life in the spring after a near-dormant winter. This phenomenon is seen most starkly in parts of the country where it gets cold and snowy in the winter months… and those of us in Northern Virginia definitely know what that’s like! If you are getting ready to sell your home, know that this is the perfect time to be doing so. If you are buying a home, prepare yourself for some stiff competition! Are you aware of the latest trends in real estate news for the spring? Here’s the lowdown, which will help buyers and sellers alike.
Mortgage rates are likely on the rise. Buyers were spoiled in 2016, with rates at near-historic lows of 4 percent or under. Since the dawn of 2017, rates have been on an upward swing. According to Bankrate.com, “The Mortgage Bankers Association predicts that the 30-year fixed will average 4.3 percent in the first quarter. Fannie Mae, the National Association of Realtors and Wells Fargo predict it will average 4.1 percent. Freddie Mac forecasts an average mortgage rate of 4.2 percent for all of 2017.” Keep in mind that rates in “the 4’s” are still considered fantastic, and that, if you have been thinking about buying a house, now remains a great time to do so!
The biggest buzzword in the real estate market right now is “millennials.” These young consumers make up the lion’s share of the homebuyer pool right now - around 61 percent. The industry was waiting for a boom in the segment of buyers under the age of 35, and it seems that has arrived. For young homebuyers, navigating the buying process is the biggest part of the battle. If you are preparing to buy your first home, make sure your proverbial ducks are in a row. Get your taxes done, if you haven’t already: the bank will want at least the last two years of your income documented. Also prepare bank statements, save up your down payment (that tax refund is a great way to do so!), and start talking to an experienced loan officer who can connect you with resources for first-time homebuyers.
In further news, it remains a seller’s market in many parts of the United States. Inventory is low across the country, although new construction is offsetting that trend a bit. In the hottest real estate markets, sellers who price their homes well can expect multiple offers quickly, and buyers may find themselves embroiled in a bidding war for the home of their dreams! The hardest-hit section of the market is the “starter home” segment, where many first-time homebuyers would be looking. This is because so many owners held onto their homes after the recession because they were not worth what they had invested in them.
With a new season comes new changes in the real estate market. Connect with a licensed Realtor today to guide you through the buying and/or selling process!
