Signs Point To A Slow Spring
Spring is typically the hottest homebuying season of the year. But in 2019, that trend might not be the case. With mortgage rates near one-year lows, home sales down and showing a possible continuing downturn, spring is looking to be a pretty good time to buy a home.
Signs are pointing to a less-than-competitive spring homebuying season. According to the National Association of Realtors, existing home sales are down 1.2%, hitting their lowest point in over three years.
New consumer data shows a 9% drop in showing activity, and it doesn’t sound like purchases are picking up any time soon. It likely means a lighter spring season in terms of home sales.
Showing traffic continues to subside from last year’s impressive heights, in January, there was not an influx of home shoppers to reverse year-over-year declines in showings, which suggests that we may see slower traffic this spring compared to last year.
Showing activity dropped the most in the West coast, where showings dipped 18.8% over the year. The Midwest saw a 12.4% drop, while activity in the South declined 11.5%. Showings decreased the least in the Northeast region, where activity dipped just 2.4%.
Other Signs Of Improvement
There are other signs of improving homebuying conditions as well. Housing inventory is finally on the climb, with supply rising in January — both over the month and over the year.
Mortgage rates have also been decreasing in recent months, hitting their lowest point in almost a year. According to Freddie Mac, the average rate on a 30-year fixed-rate mortgage was 4.35% last week.
Though home prices are still increasing, they’re doing so at a slower clip than in seven years. Prices rose 2.8% last month, marking the smallest increase since February 2012.
Are you thinking of buying a home this spring? Then you should give Steve Gilbert at Seattle Mortgage Brokers a call to find out what you need get pre-approved for your home loan. Pre-approvals are critical in both a hot and cold market. It gets you in the door and lets the realtors know you’re there to play ball and are ready to knock one out of the park. You can call us at 206-992-5635 today and take that first step to home ownership.
*This article does not represent legal interpretation or advice. This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over life of loan. Reduction in payments may reflect longer loan term. Terms of the loan may be subject to payment of points and fees by the applicant. Seattle Mortgage Brokers, LLC NMLS: LO# 305371/1598279 | MB# 761615