The Spring Real Estate Market:
The Three Things You Need to Know
Everyone knows the local real estate market is HOT! And the spring real estate market is even hotter. If you’re thinking of a move this spring, it’s not too early to plan. The spring market really starts in mid-February. Our best advice? Start the process now!
Rates to Rise Slightly
Overall, we expect interest rates to remain low, near 3.8 percent. However, due to the possibility of a strengthening economy in other sectors, interest rates could tick up to 4.1 percent. Any increase in rates reduces your buying power. For as long as I have been in real estate, rates bump up in the spring. So don’t wait! January through March could be your best opportunity to take advantage of low rates.
A Change in Off Market Listings
A new policy change from the National Association of Realtors will create some problems in identifying off-market listings. This change may make the already tight inventory in our area even tighter.
So what can help you find your dream home in this highly competitive market? A real estate team (such as ours!) can be very effective as there are more agents on the look out for off-market properties. Additionally, a team with a strong listing business can give you a heads up about potential listings. As Compass agents, we have an advantage with Compass’ nationwide market, we can share off-market properties within our brokerage so that our buyers are the first to know.
Sign a Buyer Broker Agreement
Remember, when you venture into an open house, the agent may seem absolutely wonderful and want your business. However, you may not realize that the agent works for the seller and is required to work in their best interests.
Having a buyer’s agent is essential. In this super-competitive market, you need someone working for and with you, every step of the way. From arranging showings to making an offer; from negotiating the home inspection to signing on the dotted line at settlement, a buyer’s agent does a tremendous amount of work for you.
And the best part? There’s no cost to you! A buyer’s agent is paid out of the seller’s commission.
A signed agreement with a dedicated buyer agent ensures that they are working in your best interests to negotiate the right terms and conditions that work for you. For more on the buyer broker agreement, read our related post (for more on who’s who in the real estate process, read all about Agency here).
Now is the time for us to talk. We are happy to chat by phone or schedule an appointment. You may think you can wait until spring to get serious about house-hunting however the winter months are the perfect time to prepare – get pre-approved for a mortgage, start looking at listings online, develop your wishlist, and most importantly, sit down with your Realtor to map out a strategy for the spring real estate market.
The Bottom Line
If you’re planning to jump into the spring real estate market, now is the time to get started. The best way to ensure success is to be well prepared with an experienced Realtor guiding you through the process. Reach out today!