If you think you are seeing more FOR SALE signs up in the DMV this April, you are. Some of the buying actions we typically see in a strong real estate market are re-emerging in our area.
- Mortgage interest rates have stayed under 7% for several weeks now, allowing buyers to adjust to the new reality that they have.
- Mortgage loan applications are up 18% from the same week (last in May) compared to last year. That’s remarkable, and proves the point that buyers now feel the confidence they need to get into home ownership. buyers have adjusted.
- Inventory is indeed rising, and in some areas, by as much as 20%. Buyers have more to choose from right now and in many cases, have the ability to write the contingencies they want into their offer. For so long, many had foregone home inspections, appraisals and/or financing contingencies.
Does this mean the “Sellers’ Market” of the past 4 years is over? We wouldn’t say it’s over, but the market has certainly toned down. For homes in highly sought-after areas with little turnover, we’re still seeing properties quickly go under contract and/or attracting multiple offers. Homes in pristine condition anywhere stand the best chance of that happening. But otherwise, we’re starting to see inventory catching up to demand, and starting to see buyers gaining back some of the traction that we’d typically see in a balanced buyer/seller real estate market. Spring has sprung!
