{"id":7727,"date":"2022-03-24T10:00:19","date_gmt":"2022-03-24T10:00:19","guid":{"rendered":"https:\/\/thezakariagroup.com\/what-you-can-expect-from-the-spring-housing-market\/"},"modified":"2022-03-24T10:00:19","modified_gmt":"2022-03-24T10:00:19","slug":"what-you-can-expect-from-the-spring-housing-market","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/what-you-can-expect-from-the-spring-housing-market\/","title":{"rendered":"What You Can Expect from the Spring Housing Market"},"content":{"rendered":"
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As the spring housing market kicks off, you likely want to know what you can expect this season when it comes to buying<\/a> or selling<\/a> a house. While there are multiple factors causing some uncertainty, including the conflict overseas, rising inflation<\/a>, and the first rate increase from the Federal Reserve<\/em> in over three years<\/a> \u2014 the housing market seems to be relatively immune.<\/span><\/p>\n Here\u2019s a look at what experts say you can expect this spring.<\/p>\n Freddie Mac<\/em> reports<\/a> the 30-year fixed mortgage rate has increased by more than a full point in the past six months. And despite some mild fluctuation<\/a> in recent weeks, experts believe rates will continue to edge up over the next 90 days. As Freddie Mac<\/em> says<\/a>:<\/p>\n \u201cThe Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year.\u201d<\/em><\/p>\n<\/blockquote>\n If you\u2019re a first-time buyer or a seller thinking of moving to a home that better fits your needs, realize that waiting will likely mean you\u2019ll pay a higher mortgage rate on your purchase. And that higher rate drives up your monthly payment and can really add up over the life of your loan.<\/p>\n There may be some relief coming for buyers searching for a home to purchase. Realtor.com<\/em><\/a> recently reported that the number of newly listed homes<\/a> has grown for each of the last two months. Also, the National Association of Realtors<\/em> (NAR) just announced the months\u2019 supply<\/a> of inventory increased for the first time in eight months<\/a>. The inventory of existing homes usually grows every spring, and it seems, based on recent activity, the next 90 days could bring more listings to the market.<\/p>\n If you\u2019re a buyer who has been frustrated with the limited supply of homes available for sale, it looks like you could find some relief this spring. However, be prepared to act quickly if you find the right home.<\/p>\n If you\u2019re a seller, listing now instead of waiting for this additional competition to hit the market makes sense. Your leverage in any negotiation during the sale will be impacted as additional homes come to market.<\/p>\n Prices are always determined by supply and demand. Though the number of homes entering the market is increasing, buyer demand<\/a> remains very strong. As realtor.com<\/em> explains in their most recent Housing Report<\/em><\/a>:<\/p>\n \u201cDuring the final two weeks of the month, more new sellers entered the market than during the same time last year. . . . However, with 5.8 million new homes missing from the market and millions of millennials at first-time buying ages, housing supply faces a long road to catching up with demand.\u201d<\/em><\/p>\n<\/blockquote>\n What does that mean for you? With the demand for housing still outpacing supply, home prices<\/a> will continue to appreciate. Many experts believe the level of appreciation will decelerate from the high double-digit levels we\u2019ve seen over the last two years. That means prices will continue to climb, just at a more moderate pace. Most experts are predicting home prices will not depreciate.<\/p>\n While some people may believe a 1% increase in mortgage rates will impact demand so dramatically that home prices will have to fall, experts say otherwise. Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae<\/em>, says<\/a>:<\/p>\n \u201cWhat I will caution against is making the inference that interest rates have a direct impact on house prices. That is not true.\u201d <\/em><\/p>\n<\/blockquote>\n Freddie Mac<\/em> studied the impact that mortgage rates increasing by at least 1% has had on home prices in the past. Here are the results of that study<\/a>:<\/p>\n1. Mortgage Rates Will Climb<\/strong><\/h4>\n
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2. Housing Inventory Will Increase<\/strong><\/h4>\n
3. Home Prices Will Rise<\/strong><\/h4>\n
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Won\u2019t Increasing Mortgage Rates Cause Home Prices To Fall?<\/strong><\/h4>\n
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