📸 Photo Credit: @shreeniclix
Spring Has Sprung (in Real Estate anyways)
March 1st means we've officially entered the spring market! The main variables that should make for an interesting season are continued high rates coupled with the lack of inventory. The relief we hoped for on the rate side has yet to come to fruition, keeping sellers on the sidelines. But this year, there's one significant difference...
Early Bird vs. Early Bird: Competition is Back
Buyers are sick of waiting for rates to drop! Rate stability has given eager buyers enough confidence to return to the market earlier than expected. They're looking for deals but are already being met with competition. Competition is back, even on some homes with days on market.
Per usual, competition means prices will rise, but to what extent?
Buyer Good News & Bad News
Good news first:
We're still operating off of last winter's soft comps, so prices are staying somewhat in check (until the next set of comps start dropping in about 30-45 days).
Bad news:
With competition back, we'll be pushing appraisal boundaries to fight for the win in a multiple-offer situation. Meaning: it's going to be survival of the fittest.
What About Sellers?
Mostly positive news for current sellers, except that prices will likely be lower than you hoped. Buyers are stretching out, but there are limits since rates are still taking a chunk of affordability off the purchase price.
Here's My Advice
Buyers:
Know that refinancing into lower rates is on the horizon. If you find a home you love, buy it now and tough it out. Also, if you aren't already underwritten on the loan front, you're uncompetitive. It's time to get in fighting shape (competition means you gotta have your 💩 together!).
Sellers:
Prices are going up once those rates drop, but you'll find yourself in a higher inventory environment to compete with. Also, be aware of the 2024 election season and those related variables. Let's discuss the advantages and strategy of shopping your home off-market this spring to achieve a premium.
And there you have it, the market in a minute - I hope this was helpful! Always feel free to contact me with any questions, big or small, regarding anything mentioned above or any miscellaneous real estate questions you have. Don't be shy, reach out!
Until next time,
Michael
(650) 898-8869 (call or text)