Main Line Realtors® Outline What Spring Has in Store for the Housing Market
The spring housing rush traditionally begins after Super Bowl Sunday as more homeowners begin listing their houses and buyers anticipate their tax refunds. A lower inventory suggests the housing market is moving towards a seller’s market. The local Main Line Realtors® at Sage Realty offer these predictions for the upcoming season.
A Low Inventory Creates Higher Prices
Real estate is the perfect example of the economic theory of supply and demand. As more Millennials become first-time home buyers, the limited inventory and increased competition have helped to create higher home prices. While this is good news for sellers looking for a larger return on their investment, potential buyers may be deterred. However, as interest rates continue to rise, the steady increase of home prices is expected to gradually slow.
Higher Interest Rates Expected to Lower the National Home Price Index
With an improving economic forecast, interest rates are expected to continue to rise. As interest rates increase, the home price increase of recent months will likely slow to compensate. The combination of short supply and higher interest rates could create a stagnant market in some areas as Millennials struggle to save for large down payments and higher mortgage costs.
Working with a buyer’s agent, such as a Main Line Realtor® at Sage Realty, can help new home buyers understand the implications of these higher interest rates to determine the best time for them to buy.
Local Main Line Realtors® Foresee Increased Supply
Realtor.com’s® 2017 National Housing Forecast also predicts that the housing market’s prices will slow somewhat as interest rates climb, however local area Main Line realtors are leaning towards positive 2017. Many believe that the improved equity and higher home prices will tempt more homeowners to list their current houses for sale. As more current homeowners opt to downsize or upgrade their homes, buyers will begin to have a greater selection of homes than is currently available.
Despite the current limited supply of homes for sale in the Main Line, buyers are encouraged to begin their house hunt early to improve their chances of securing their ideal homes before interest rates climb much higher.
Call a Sage Realty Main Line Realtor®for Experienced Guidance Buying or Selling a Home
For more information about the current housing market in the Main Line or surrounding areas, or to begin your home buying journey, please contact the experts at Sage Realty. Our Main Line Realtors®are dedicated to our clients’ best interests.
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