Here are three things you need to know about our spring market.

Right now, it seems like everyone wants to know what’s happening with the spring market. Whether you’re looking to buy or sell, there are three things you need to be aware of before hopping into our market:

1. Interest rates will continue to rise. Over the last six months, interest rates have climbed by a full point, but it doesn’t look like they’re done increasing yet. According to Freddie Mac, “The Federal Reserve raising short-term interest rates and signaling further increases means mortgage rates should continue to rise over the course of the year.” If you’re a buyer, it might make sense to enter the market sooner rather than later so you can avoid higher interest rates.

Buyers and sellers should move fast to take advantage of our market.

2. Inventory will increase. Historically, the housing supply tends to increase during the spring and summer months. We’re in a unique market with insanely low inventory, so more homes for sale could be exactly what buyers need. For sellers, I recommend you list your house soon so you can avoid the extra competition.

3. Home prices will continue to climb higher. Prices have appreciated like crazy over the last two years, which has a lot of people assuming they must come down soon. However, all the experts agree: Depreciation isn’t happening anytime soon. That being said, prices probably won’t rise at the insane pace we’ve seen over the last couple of years. Instead, they will increase at a steady and sustainable rate.

So what’s the bottom line? If you’re looking to buy, you might want to enter the market soon so you can avoid higher interest rates and prices. Meanwhile, sellers should take advantage of our low inventory while it lasts and list their homes soon.

If you have questions about today’s topic or anything else related to real estate, please call or email me. I look forward to hearing from you.