The spring real estate market in any year is generally the most ideal time to buy and sell real estate because everybody is singing to the same tune. After winter, many interested homeowners look to sell their property and eager buyers are there awaiting them. In all reality, expect 2017 to be more of the same, however, buyer demand will likely be significantly higher this year.
In addition, most real estate markets across the country are experiencing tight inventory and increasing property values. Finally, increasing mortgage interest rates are something that interested homebuyers have to consider when looking for real estate in 2017, forcing them to pay more for their property over the course of their loan. All in all, most real estate markets across the nation are favoring sellers at this time.
Why The Increase In Buyer Demand?
The reason we are likely to see a significant increase in buyer demand in the spring of 2017 is because there are even more millennial first time homebuyers searching for an ideal property. In addition, buyers from other generations are looking to capitalize on real estate now, before property values and mortgage interest rates increase even further. This increase in buyer demand will likely be accompanied with fewer sellers, making the 2017 real estate market more competitive overall.
Not Much Real Estate Inventory For Buyers To Choose From
Since there are fewer sellers looking to part with their property in the spring of 2017, overall real estate inventory levels will be significantly lower than last year. This will likely result in properties changing hands quickly. Interested homebuyers who are looking for real estate in the spring of 2017 should pounce on any ideal properties before other buyers have a chance to do so. Overall, expect the average number of days inventory sits on the market to go down significantly in 2017, as homeowners won’t have much problem selling their real estate now.
Property Values Are On Their Way Up
Increasing property values are another issue that interested homebuyers are going to have to deal with in spring of 2017. Throughout the last couple of years, property values have been on a significant uptrend so anyone who didn’t purchase real estate yet is going to have to pay significantly more for it now. This may give many interested homebuyers a reason to pause and consider waiting for the market to undergo a correction. However, this may not happen anytime soon, as overall demand for real estate is bound to continue to increase over the next couple of years. In other words, interested homebuyers should secure real estate now, as they will likely be able to sell their property for a profit in a few years, if they choose to do so.
How High Are Mortgage Interest Rates Going To Go?
While no one can answer this question with complete accuracy, it is safe to say that mortgage interest rates will continue to increase over the next couple of years. Truthfully, homebuyers who secured a mortgage over the last couple years have been extremely spoiled, as interest rates have remained near record lows. However, as the real estate market improves, expect mortgage interest rates to go up significantly to typical borrowing rates. All in all, we can expect mortgage interest rates to increase over 5% relatively soon and likely go up as high as 7% over the long term. In other words, homebuyers who secure real estate now will be able to take advantage of the relatively low mortgage interest rates and pay less over the course of their investment.
Can Buyers Secure A Deal When Purchasing Property In Spring Of 2017?
In some areas of the country, interested homebuyers may be able to secure real estate for a deal in the spring of 2017, however, for the greater majority of buyers, don’t expect sellers to lower their asking price significantly. In desirable areas of the country, finding a deal will be a rather difficult pursuit, however, when thinking about the long-term, almost all real estate is a deal, assuming that property values continue to follow the current uptrend.
Should I Wait Until Summer, Winter, Or Even Next Year To Purchase Real Estate?
Since the spring 2017 real estate market is going to be extremely competitive, many interesting homebuyers are considering waiting until summer, winter, or even 2018 before purchasing a property. While predicting the future is nearly impossible, it is safe to say that interested homebuyers who wait over the short and long term will likely end up paying more for a property when they eventually decide jump into the market. In other words, take advantage of the spring of 2017 and secure real estate while mortgage interest rates are still rather low.
Interested homebuyers who absolutely want to purchase real estate in the spring of 2017 need to be aware of all the factors that are dictating the current real estate market conditions. Since real estate inventory is likely to be in short supply, it is important to submit a competitive bid in order to enter the realm of homeownership. Ideally, work with an excellent real estate agent who will be able to suggest plenty of properties immediately after they are listed on the market. In spring of 2017, the early bird gets the worm so buyers should be ready to take action when they see the property they want.