5 Spring Housing Trends to Expect This Year

Spring is a good time to buy or sell a home. Buyers come out of hibernation and sales peak in the spring. Spring is the busiest season when it comes to real estate.

Here are 5 spring housing trends to expect this year:

Trend #1 – The number of homes for sale is limited

There are lots of buyers and not a lot of homes to go around. If you are entering the market as a buyer, get ready to compete with other buyers! Prepare yourself to face a lot of competition for the home you’d like to call your own.

Trend #2 – Mortgage rates could rise

Low mortgage rates are still available, but if you’re a buyer, you won’t want to waste time with indecisiveness. Rates are expected to rise in June, and this may be the year mortgage rates really rise.

Trend #3 – Home sales should rise

Even if and when rates rise, home sales and home prices are expected to increase this spring. Home prices are forecasted to increase up to 5 percent. New home sales are expected to rise by 13 percent this year.

Trend #4 – Credit standards are loosening up

Credit availability is expected to continue increasing through the spring and slowly improve over the next couple of years.

The Federal Housing Association (FHA) reduced annual mortgage insurance premiums that borrowers have to pay. They did so just in time for the spring season. If a borrower takes out an FHA loan and makes a down payment of less than 5 percent, they will charged 0.85 percent of the loan amount every year for mortgage insurance. The mortgage insurance premium used to be 1.35 percent per year.

Trend #5 – Vacation home and high-end homes are a hot market

According to the National Association of Realtors, sales of homes in the $750,000 to $1 million range grew 12.6 percent in February compared to February last year. The fear of losing out on low mortgage rates causes a surge in business. Baby boomers and international buyers want to buy before interest rates rise. Why? Because a rate increase of just 1 percent on a 30-year loan for a $1 million home means a $600 increase in monthly mortgage payments.

Wondering if the time is right for you to buy or sell this spring? Let The Pikoff Team help you understand this spring’s housing trends. You can trust our knowledge of spring housing trends. Contact The Pikoff Team at (281) 670-1910 today.