The spring homebuying market is off to a strong start in 2024, with existing home sales up 9.5% month over month in February and prices increasing by 5.7% year over year. The National Association of Realtors reported that inventory also saw a slight increase to 2.9 months, giving hope to homebuyers looking for their next property.
Despite stubbornly high interest rates, the Federal Reserve announced that its rate hike program may soon end, leading to a decrease in mortgage interest rates for the second consecutive week at the end of March. This news comes as a welcome relief for buyers navigating the competitive housing market.
Affordable homes are still available, but buyers may face stiff competition in many markets. Lawrence Yun, chief economist at the National Association of Realtors, advises buyers to expect multiple offers on affordable homes due to limited supply. However, regions like the South, Midwest, and Texas are seeing an increase in homes priced between $200,000 and $350,000, offering more options for buyers.
New construction homes are becoming increasingly appealing, with a median sales price of $400,500 in February. Sales of new construction homes are on the rise, and with growing builder confidence, more options will be available to buyers in the coming months.
Overall, the spring real estate market is expected to be a mix of drama and frustration for both buyers and sellers. With the potential for more affordable options and increased inventory, buyers should be prepared to act quickly and make strong offers to secure their dream home in this competitive market.