Spring has finally sprung. Let’s celebrate the end of winter by taking a look at the April edition of our hot-off-the-press market report.
Many people right now are wondering, “What’s going to happen to home prices?” They want to know whether this ongoing rise in prices is truly sustainable. They’re also wondering whether we’re headed toward another bubble.
Let’s take a look at some recent market statistics. You can follow along in the video to see charts and additional information pertaining to today’s topic.
Housing inventory is very low right now. As of February, inventory has decreased just over 8% year over year. This low level of supply has been driving buyer demand up so significantly that we currently have more buyer traffic than what we saw in May of last year.
In the words of Rick Palacios Jr. (the director of research from John Burns Real Estate Consulting): “Buyers thought they could wait forever because rates were going to stay low forever. They’re starting to realize that if they’re going to buy, they should probably buy now.”
With all of this in mind, it’s important to realize that market statistics will vary by location. While average home prices have risen 6.6% year over year on a national level, the year-over-year change in price does vary between individual states.
As the numbers show, the reason behind the upward pressure on prices is as simple as supply and demand. Demand goes up as supply goes down. But does this mean we’re on the verge of a bubble? This is unlikely as rates are slowing. Currently, most experts predict that we will see an appreciation rate between 4.5% and 5.9% in 2018.
Not all market trends this year have been this consistent, though. After rising steadily for the first few weeks of 2018, interest rates have been bouncing around lately. Therefore, I don’t recommend waiting around for a better time to buy. Whether you’ve been thinking of buying or listing, now is a great time to make your move.
If you would like to learn more about the listing process, you cansign up today for our next Home Selling Sharks Seminar. This seminar will take place on June 12, 2018, at the Hilton Garden Inn in Fort Washington. To learn more about the event, visit http://www.homesellingsharks.com/.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.