What do you think the real estate market will be like this summer? Will buyers be experiencing the summertime blues with a lack of inventory, interest rates in the 7% range, increasing prices, and strong demand from other buyers, keeping it a tight seller’s market? Will sellers do the right things to sell their homes by properly pricing their house, staging so it is ready for market, and be able to choose from multiple buyers, making it difficult for some people to become homeowners?

Will interest rates come down with the spread between 10-year yield and 30-year fixed interest rates coming closer together? If this happens, will more people put their homes on the market because they won’t have as much mortgage rate lock-in effect? Will inventory increase because the only thing people like about their house is their interest rate, and they are ready to move? Will buyers stay put if rates don’t come down because of affordability issues?

The most consistent theme in these questions is interest rates, right? Yes, but also inventory. These are the major factors that dictate the real estate market and, of course, pricing. If we see fewer houses on the market coupled with lower rates, we will see more buyers and higher prices. If we see higher rates, we will have fewer buyers and, hence, more inventory, so prices will moderate and, in some cases, may come down.

Nationally, we are seeing more houses for sale, but locally, we have only slightly more inventory than last year, which is way below the 5-year average for active homes for sale. Again, demand remains high in our area, insulating us from broader market trends and news headlines about the real estate market around the country. That’s why having a knowledgeable agent is crucial to understand local market conditions and trends. If you or someone you know is looking to buy or sell a home, I am here to help.

Please feel free to reach out to discuss my answers to the questions above. Enjoy the long days and warm temperatures!