2024 Spring Selling Season Market Insights

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Spring selling season is here, and it’s one of the best times for homeowners to list their properties and for buyers to find their dream homes. With its warm weather and longer daylight hours, this season brings out the best in properties, creating an attractive atmosphere for potential buyers. However, understanding the current market dynamics is crucial. Let’s explore what you need to know to make the most of this exciting period.

Understanding the Current Market

The spring selling season is set against a backdrop of fluctuating mortgage rates and shifting market dynamics. According to Redfin’s recent housing market update, high home prices and mortgage rates sent many sellers and buyers to the sidelines in April and the start of May. Encouraging economic news last week drove mortgage rates down slightly, potentially bringing back prospective sellers and house hunters. Here’s a closer look at key trends:

Record High Monthly Payments: The median U.S. monthly housing payment hit an all-time high of $2,894 during the four weeks ending May 5, up 14% from a year earlier.

Rising Home Prices: Home prices rose 4.5% to their own record high, with supply lagging due to high rates.
Sluggish Supply: New listings rose 9% year-over-year, but this is the smallest increase in three months, as many would-be sellers stayed put to hold onto their low mortgage rates.
Declining Home Sales: Pending home sales dropped 3% from a year earlier, the biggest decline in two months.

Slowing Competition: Only 30% of homes sold above asking price, down from 32% a year earlier and more than 50% two years ago.
Increasing Price Drops: 6.2% of home sellers dropped their asking price, the highest share since November and up from 4.3% a year ago.
Signs of Demand Pick-Up: Mortgage-purchase applications increased 2% week over week, indicating a potential rise in demand.

Why Spring Selling Season Matters

Curb Appeal: Flowers bloom, and lawns turn green, enhancing a home’s visual appeal.
Active Buyers: With warmer weather, families are out searching for homes before the new school year.
Inventory Increase: More listings mean greater options for buyers, leading to a livelier market.

Tips for Sellers in the Spring Selling Season

Boost Curb Appeal: Plant fresh flowers, mow the lawn, and clean up the exterior.
Price Competitively: Research recent sales and consult with a real estate agent for pricing strategies.
Stage to Impress: Highlight your home’s best features with tasteful staging and bright, welcoming décor.

Strategies for Buyers in the Spring Selling Season

tips for first time home buyers — Image from Canva

Get Pre-Approved: Secure pre-approval for a mortgage to stand out to sellers.
Act Quickly: Homes sell fast in spring, so be prepared to make an offer.
Inspect Thoroughly: While competition is high, don’t skip essential inspections.

Real Estate Agent Insights

Market Analysis: Agents can provide a comparative market analysis to help price your home competitively.
Negotiation Skills: A skilled negotiator can help you secure the best possible deal.
Local Expertise: Agents familiar with your neighborhood will know what buyers are seeking.

Market Outlook for the Spring Selling Season

Recent economic news has brought mortgage rates down from their peak, offering buyers some relief. Daily average mortgage rates fell from a five-month high of 7.5% on April 30 to around 7.2% at the end of last week. The Federal Reserve held interest rates steady and suggested a possible rate cut later this year. Meanwhile, a soft jobs report further contributed to positive economic news.

David Palmer, a Redfin Premier agent in Seattle, said, “The market is a mixed bag, with high mortgage rates causing some listings to sit longer than I would expect in the springtime and high prices holding steady. Sellers can rest assured that there are plenty of motivated buyers who are jumping into the market now; they finally understand that rates aren’t going to plummet anytime soon.”

Budget-Friendly Housing Markets for Those Earning Under $100,000

In today’s economic climate, finding a home that doesn’t stretch your budget can seem daunting. Budget-friendly housing markets offer hope and possibilities for many, especially those earning under $100,000 annually.

The spring selling season offers unique opportunities for both buyers and sellers. Sellers can showcase their homes at their best, while buyers can capitalize on increased inventory. By understanding the current market trends and adopting smart strategies, both groups can achieve their real estate goals this spring.