As people begin to venture outside after the long, dark winter, they won’t have long to explore this strange new world of warmth and blue skies if they plan on buying a home this spring.
Buyers are expected to outnumber sellers, meaning there will be more people looking for a home than there are homes to be sold, The Wall Street Journal reports. With demand outpacing supply, asking prices for the homes that are available will be high.
In January, the median price for a single-family home across the country was $213,800, which marked an 8.2 percent increase from a year prior. The higher prices point to a larger number of borrowers. The good news for borrowers is mortgage rates have fallen and the interest rate for a 30-year, fixed-rate jumbo mortgage was 3.65 percent for the week ending March 4. Rates should stay below 4 percent at least through May.
The best thing buyers who are serious about purchasing their new home this spring can do, is to get into the market as soon as possible. Another helpful tip for buyers is to skip prequalification and go straight to the full step of preapproval as it can save more than a week in the closing period.