Spring housing market heating up, but rising rates pose challenges for buyers
The housing market’s spring selling season is anticipated to be more robust this year as inventory continues to increase, a positive sign for buyers looking for a new home. According to recent data, there has been a 14.8% increase in homes listed for sale compared to last year, marking the fourth consecutive month of growth in inventory.
While inventory remains down nearly 40% from pre-pandemic levels, new listings from sellers entering the market have also risen by 11.3% in February. Despite the increase in available homes, mortgage rates remain high, with the average for a 30-year fixed loan at 6.88%. However, Federal Reserve Chair Jerome Powell has hinted at potential interest rate cuts later this year, which could lead to lower mortgage rates for buyers.
Despite the increase in inventory and potential decrease in mortgage rates, experts are only expecting a slight increase in home prices, with some forecasts even predicting a slight decline. The housing market is still facing uncertainties, such as inflation and potential interest rate cuts, which could impact sales in the coming months.
Realtor.com chief economist Danielle Hale sees a promising start to the spring selling season but does not anticipate significant growth in home prices. For more real estate and housing market news, reports, and analysis, readers are encouraged to visit Yahoo Finance.
