Planning on selling? Homes listed between May 1–15 sell on average nine days faster and for 1 percent more than the average listing (about $1,500), according to Zillow. What does this mean? It's a seller's market. Why? Low supply combined with high demand.
It's a long–known fact that buyers are out in full force during Spring Homebuying Season — and they start searching early, but the reality is that it takes time to find the dream home. "By May, some buyers may be anxious to get settled into a new home — and will be more willing to pay a premium to close the deal," says Zillow chief economist Svenja Gudell.
Currently, there are 3 percent fewer homes on the market compared to last year. And on top of that, we've seen a moderate increase in interest rates which have remained well above their level of a year ago. With Spring Homebuying Season approaching, this is good news in an environment where historically low mortgage rates will help offset the pace of house price growth and lack of for–sale inventory in many markets. With the threat of higher interest rates comes higher demand.
What does this mean for buyers? It may be a seller's market, but understanding the market can help you better strategize. Did you know more houses are listed on Fridays and Saturdays? Also, weather affects the best time to buy and sell. The warmer the weather, the greater the buying competition. Take this info into consideration and start planning now. Visit My Home by Freddie Mac for resources to help you make informed decisions — and hopefully get into a new home!
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