Spring has sprung! According to realtor.com, some key real estate trends suggest that this spring buying season will be “crazy”.
The economy remains strong. The up-and-down financial markets have been on the upswing. Employment continues to improve across the country. According to realtor.com, 215,000 jobs were created in March alone. This helped the first quarter of 2016 end on a great note. All of these new jobs mean more real estate buyers with financial power. They also indicate that more Americans will be confident, optimistic consumers. The strong economy means positive things for spring real estate.
“After taking a dip in February, consumer confidence mostly recovered in March and remains near multiyear highs. The number of consumers who say they plan to purchase a home is at its highest point in eight years, reflecting that strong confidence but also significant pent-up demand for home purchases that were delayed or unresolved in 2015,” said chief economist at realtor.com, Jonathan Smoke.
While for sellers things are great, supply is still catching up for buyers. Smoke did note that listings grew in both February and March, hopefully meaning they will continue to grow this spring.
Another positive for buyers right now: mortgage rates remain low.
“The average 30-year fixed conforming rate ended March almost 40 basis points lower than the end of 2015. (A basis point is 0.01 percentage point.) The lower rate translates into more than 4% additional buying power and/or makes it easier for some buyers to qualify for a loan,” Smoke wrote.
While this crazy spring buying season may sound like it is only cut out for buyers, Smoke also wrote that 80% of sellers will become buyers themselves.
We are ready and excited for a busy spring buying season at RE/MAX Paradise! Looking to buy a piece of Miami’s best properties this spring? Check them out here and contact us today!